News hit this morning that China is retaliating against the US trade policies and slapping tariffs on key U.S. imports including soybeans, planes, cars, beef and chemicals.
What does this mean for soybeans and the markets? Well China is the world’s biggest importer of soybeans and America’s largest buyer in trade worth $14 billion last year. That is about one-third of overall soybean production. China is the world’s biggest pork producer and consumer and its industry relies on soybean meal, a product of soybean crushing, to feed to pigs. Brazil will step up and improve their logistics to take market share from the US. We have already seen that in oilseed. Do we call this a trade war just yet? And what is the correct way to hedge this increased volume and significant fundamental news? We are here to discuss your concerns and questions as tariff discussions move forward.
Article used: https://www.bloomberg.com/news/articles/2018-04-04/china-to-levy-25-tariffs-on-u-s-soybean-imports-cctv-reports