China Tariffs on Soybeans Reduce Exports, Prices
U.S. soybean exports are down 250 million bushels from last month
The U.S. Department of Agriculture confirms what Iowa Soybean Association (ISA) leaders and grain analysts predicted for months: China’s 25% tariff on U.S. soybeans will reduce exports and prices, says a report from the Iowa Soybean Association.
U.S. soybean exports are forecast at 2.04 billion bushels during the 2018-19 marketing year, down 250 million bushels from last month, according to the July World Agricultural Supply and Demand Estimates Report. The drop reflects the added tax on U.S. soybeans by China, which now stands at 28%, effective July 6.
Soybean prices have plummeted more than $2 per bushel since the U.S.-China trade war heated up in late winter. Now that tariff threats became reality, the government lowered the 2018-19 U.S. season-average soybean price 75 cents at the midpoint. The forecast is $8 to $10.50 per bushel.
Read the full report here.