Soybean Prices Could Improve 15% with Tariff Resolution
Recent movement on NAFTA negotiations, willingness to negotiate with China give economist hope
It’s no secret that retaliatory tariffs have impacted soybean prices negatively. However, if our trade disputes are resolved, one economist says prices could improve by 15%, reports AgPro.
“We have six major trading partners that have issued retaliatory tariffs affecting agriculture," Jackson Takach, an economist with Farmer Mac told Clinton Griffiths on AgriTalk. "Those six partners represent about 53% of all exports for U.S. agriculture."
However, recent movement on NAFTA negotiations and an indication on Wednesday that the U.S. is willing to negotiate with China gives Takach hope.
If the U.S. and China resolve their issues on trade, and they reduce the tariff on soybeans markets could see a 15% appreciation on price, Takach said.