Soybean showing signs of recovery,
- Earlier this month, the price of Soybean in the United States declined to the worst level since the 2008/09 crisis as the Sino-American trade negotiations failed to yield results and both sides once again resorting to tariff war.
As a result of the trade war between the U.S. and China, the Soybean price declined 790 cents per bushel. However, President Trump successfully placed a floor under it. The price is currently trading at 838 cents per bushel.
Here is the Trump put,
- “Talks with China continue in a very congenial manner - there is absolutely no need to rush - as Tariffs are NOW being paid to the United States by China of 25% on 250 Billion Dollars worth of goods & products. These massive payments go directly to the Treasury of the U.S........The process has begun to place additional Tariffs at 25% on the remaining 325 Billion Dollars. The U.S. only sells China approximately 100 Billion Dollars of goods & products, a very big imbalance. With the over 100 Billion Dollars in Tariffs that we take in, we will buy.........agricultural products from our Great Farmers, in larger amounts than China ever did, and ship it to poor & starving countries in the form of humanitarian assistance. In the meantime we will continue to negotiate with China in the hopes that they do not again try to redo deal!”
- “We are right where we want to be with China. Remember, they broke the deal with us & tried to renegotiate. We will be taking in Tens of Billions of Dollars in Tariffs from China. Buyers of product can make it themselves in the USA (ideal), or buy it from non-Tariffed countries.......We will then spend (match or better) the money that China may no longer be spending with our Great Patriot Farmers (Agriculture), which is a small percentage of total Tariffs received, and distribute the food to starving people in nations around the world! GREAT! #MAGA”
With a put like that, we expect soybean and other grain prices to at least consolidate if not rise.