American farmers may pay the costs of Trump’s ill-advised tariffs on friends

2018/6/6 16:52:23

Long established patterns in agricultural commodity trading may be on the verge of a major upset at the Trump administration slaps tariffs on steel and aluminum exports by America’s friends in Canada and Europe. In retaliation, some countries now will be looking for new trading partners, which could provide opportunities for Ukrainian producers of sun and soy.

 


Jack Scoville takes a look at all U.S. commodities in this report for Born2Invest:

 

Soybeans and soybean meal

 

Soybeans and the products were lower last week. The US and China have continued talks to try to resolve the trade dispute. An agreement was found on some issues in the first round of meetings, but there are still a lot of issues that need to be resolved, and the differences are said to be big on some of these items. Prices have been pressured since Tuesday after the Trump administration said it was moving ahead with tariffs even though the negotiations between the two countries were going very well.

 

There were ideas that tariffs could be applied as a tactic to pressure China, and this move appeared mostly designed to get legal and formal hurdles out of the way as a precaution. The US went ahead with tariffs on metals imports from the EU, Canada, and Mexico last week. There will be retaliation, and it is possible that grains and oilseeds will see new or increased tariffs. USDA showed very good planting progress, and farmers should move quickly now to complete planting as corn is now mostly in the ground. Only double-crop soybeans will be left and will need to wait until the wheat is harvested. Farmers in much of the Midwest are almost done or are done planting.

 

For the complete report, link below:

https://born2invest.com/articles/cotto ... losive-rally-rice-dipped/

 

 

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