Trump said soybean prices have gone up. They're near decade-lows.
Sep 28, 2018 01:52:00 #
President Donald Trump claims US soybeans have largely held up against his trade war with China. But tariffs have pushed prices to lows not seen since 2008.
"And soybeans are going up, and things are going up," he said at a press conference in New York on Wednesday. "And we've had very little hurt, from what I’ve done. In fact, the markets have gone up, and the farmers are going to do great."
In reality, soybean prices have fallen more than 12% since China placed a 25% import tax on the legume to retaliate against the Trump administration. That country is the largest soybean customer in the world, accounting for more than half of global imports in 2017.
"There's a lot of concern about the future," Gary Schnitkey, a farm management specialist and University of Illinois professor, said. "Because [soybean farmers] are going to see much lower prices as a result of tariffs."
Also on Wednesday, Trump said China has started buying US soybeans again. But officials in Beijing have been strategizing to minimize reliance on US soybeans since the start of the trade war. China has swapped much of its demand to South America and away from the US, which is now seeing record levels of soybean inventories.
"At this juncture of deepening trade tensions, it is unlikely that private traders in China would seek to buy US origin soybeans," JPMorgan analysts said in a recent research note.
"The Art of the Deal" Trump is ruining Farmers and others. Billions are being lost out of ego.
"And soybeans are going up, and things are going up," he said at a press conference in New York on Wednesday. "And we've had very little hurt, from what I’ve done. In fact, the markets have gone up, and the farmers are going to do great."
In reality, soybean prices have fallen more than 12% since China placed a 25% import tax on the legume to retaliate against the Trump administration. That country is the largest soybean customer in the world, accounting for more than half of global imports in 2017.
"There's a lot of concern about the future," Gary Schnitkey, a farm management specialist and University of Illinois professor, said. "Because [soybean farmers] are going to see much lower prices as a result of tariffs."
Also on Wednesday, Trump said China has started buying US soybeans again. But officials in Beijing have been strategizing to minimize reliance on US soybeans since the start of the trade war. China has swapped much of its demand to South America and away from the US, which is now seeing record levels of soybean inventories.
"At this juncture of deepening trade tensions, it is unlikely that private traders in China would seek to buy US origin soybeans," JPMorgan analysts said in a recent research note.
"The Art of the Deal" Trump is ruining Farmers and others. Billions are being lost out of ego.
Sep 28, 2018 02:11:01 #
rumitoid wrote:
President Donald Trump claims US soybeans have lar... (show quote)
They are at record lows so people are doing bargain buying. But he is right--they are going up because his actions drove them so low...
Sep 28, 2018 06:48:08 #
Sep 28, 2018 20:03:33 #
PeterS wrote:
They are at record lows so people are doing bargain buying. But he is right--they are going up because his actions drove them so low...
Yes.
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