BloombergCHICAGO (Bloomberg) — Soybean prices have regained the ground lost since China imposed tariffs on U.S. farm goods. For growers, a recovery could take years.
Saturday marked the anniversary of those tariffs taking effect. While Chicago futures are back above levels of 12 months ago, they are still well below prices before U.S.-China trade tensions began escalating, and recent gains were driven by record rain that disrupted planting. Now, a disease that has forced the culling of millions of soy-eating hogs in China further clouds demand.
The trade war has cost American growers their biggest customer, and the industry has struggled to find other buyers big enough to fill the hole left by China. There are record amounts of beans in silos, bins and bags across the U.S. heartland as South America picks up market share.
From October 2018 through March 2019, a span that covers the seasonal peak of U.S. soy exports, China imported 21.7 million metric tons less of the oilseed from the U.S. than a year earlier and bought 11.5 million tons more from Brazil, according to the U.S. Department of Agriculture.Speech