It appears China has stopped buying soybeans from the US altogether because of trade fight

[FriendlyFire]

I thought there was another month or so before the 50 Bil in new tariffs come into effect ? Only the steel and aluminum tariffs have actually started and China had retaliated with tariffs on nuts. Also isnt the soybean harvest isnt underway already?

Anyway Trade wars are good and easy to win !
MAGA

It appears China has stopped buying soybeans from the US altogether because of trade fight

China is apparently no longer buying U.S. soybeans amid the rise in trade tensions, Bloomberg reported Wednesday.

"Whatever they're buying is non-U.S.," Soren Schroder, CEO of New York-based Bunge, the world's largest oilseeds processor, told the news outlet in a phone interview. "They're buying beans in Canada, in Brazil, mostly Brazil, but very deliberately not buying anything from the U.S."

https://www.cnbc.com/2018/05/02/it-...the-us-altogether-because-of-trade-fight.html

China canceled a net 62,690 metric tons of U.S. soybean purchases in the two weeks ended April 19, the Bloomberg article pointed out, citing USDA data for the current marketing year.

 

[Timsup2nothin]

Surprised? I'm not.

 

[Lemon Merchant]

But gee, a trade war is a good thing. Isn't it?

 

[hobbsyoyo]

I hate to see people hurt but this is what they voted for. Trade war was on no one's agenda except Trump.

 

[Birdjaguar]

Maybe farmers will learn to not vote for stupidity.

 

[FriendlyFire]

OK it seems the real test will be harvest time around September
US farmer can probably take a 10% hit and lose money for their harvest this year, they probably wont be able to whether a tradewar if they keep losing money farming soy several years in a row

Freshly harvested South American soybeans typically dominate the world trade in the first half of the calendar year, followed by the United States from September onwards.
But U.S. soybean sales to China over the last four weeks are down 10 percent from this time a year ago, according to U.S. trade figures - a blow to U.S. farm country, which helped propel U.S. President Donald Trump into office in the 2016 election.
Mexican buyers imported ten times more corn from Brazil last year due to concerns that NAFTA renegotiations could disrupt their U.S. supplies.

https://www.reuters.com/article/us-...oybean-sales-to-china-bunge-ceo-idUSKBN1I318R

 

[Zelig]

Maybe farmers will learn to not vote for stupidity.

Doubtful. Someone who refuses to change their vote for stupidity presumably feels they're justified in the same way that someone who votes against crony capitalism refuses to change their votes despite corporate economic retaliation.

 

[Birdjaguar]

It will be interesting to see what they do when Trump takes billions of dollars out of their pockets.

 

[Timsup2nothin]

It will be interesting to see what they do when Trump takes billions of dollars out of their pockets.

Hannity will be telling them that all that really matters is that the tax cut put a few nickles in, not what is coming out.

 

[dutchfire]

I thought there was another month or so before

Shipping time US -> China by ship is several weeks. You don't want to buy now and get hit by a tariff when your ship arrives.

 

[Sommerswerd]

Are soybeans the only thing that China is retaliating on? Or are there other goods that they are boycotting? And is this a full boycott? Or did they just cancel the one shipment?

 

[Hrothbern]

Are soybeans the only thing that China is retaliating on? Or are there other goods that they are boycotting? And is this a full boycott? Or did they just cancel the one shipment?

That one shipment so far was roughly 63,000 metric tons, which is roughly 27 Mio USD worth before tariffs

Small potatoes, but conveniently picked up rapidly by the press
A nice political signal for a start.

And also practical, because it avoids price negotions in a big hurry that would include clauses that would deal with a sudden (significant) tariff change.

 

[Hygro]

Doubtful. Someone who refuses to change their vote for stupidity presumably feels they're justified in the same way that someone who votes against crony capitalism refuses to change their votes despite corporate economic retaliation.

What exactly do you have in mind by the latter situation?

 

[Sommerswerd]

It will be interesting to see what they do when Trump takes billions of dollars out of their pockets.

Even accepting for the sake of discussion that any substantial (as in election swaying) amount of Trump's voters are being hurt by this... I'm not buying the notion that folks were blindsided by it or that they didn't anticipate this possibility and weren't willing to endure it to make their stand for what they wanted out of supporting Trump.

In other words, the whole "that'll teach em'" thing rings hollow to me. I think Trump is what they though he was and they are fine with it. Either that or what they are getting was and is worth whatever they are giving up. That's what his poll numbers suggest anyway.

 

[Zelig]

What exactly do you have in mind by the latter situation?

When Alberta elected its NDP government, there were various cries of how that would result in decreased investment due to "business uncertainty", which was essentially dog-whistling for "companies won't create jobs here if you elect a government they don't like." Thankfully, in that case, it was mostly a baseless threat of the situation occurring, since it turns out companies are soulless entities who go where the profit is, with neither grudge nor good will.

Personally, I found even the threat to be tone deaf - if corporations were taking that kind of action, it would be even more reason to take away their influence.

 

[Azem.Ocram]

Rural Trump supporters have made their beds; now they must lay in them!

A trade war with China is unwinnable. A totalitarian country ran by a communist party will always leave less damaged from a trade war than a republic ran by corporations.

 

[rah]

Some take the more simplistic view that if you have trade deficient with a country you can't lose because the inevitable is tariff on everything. And I can't think of anybody more simplistic.

 

[Truthy]

A lot (hard for me to tell exactly how much) of the damage is being mitigated by trade realignments. Brazil's soybean prices have risen a lot, since that's where China is getting more its soybeans now, and it looks like the US immediately started selling more to Argentina, the Netherlands, and Germany.

 

[Hrothbern]

A lot (hard for me to tell exactly how much) of the damage is being mitigated by trade realignments. Brazil's soybean prices have risen a lot, since that's where China is getting more its soybeans now, and it looks like the US immediately started selling more to Argentina, the Netherlands, and Germany.

sensible reaction of the market
but it does weaken the position of the US in the trading tension with the EU

Considering that most soy is food for cattle etc, the entities involved will reconsider the use of soy if the price goes up. They look at the price of proteins and starch/oil and the digestion efficiency of those per kind of food.

 

[metalhead]

A lot (hard for me to tell exactly how much) of the damage is being mitigated by trade realignments. Brazil's soybean prices have risen a lot, since that's where China is getting more its soybeans now, and it looks like the US immediately started selling more to Argentina, the Netherlands, and Germany.

Won't the U.S. have trouble exporting soy to EU because of GMO regulations?