What Soybean Prices Say About China Trade Deal
China’s promise to buy more U.S. farm products hasn’t pushed up agricultural futures
With the recently signed U.S. trade deal with China, Chicago’s agricultural futures markets have been notably quiet, repors The Wall Street Journal.
Despite China’s commitment to buy more American farm products, prices haven’t gone up — a sign that investors and traders don’t see the accord having much real economic impact.
The price of a bushel of soybeans is lower than it was when Donald Trump was elected president in November 2016.
It is little changed from when Trump ramped up his trade confrontation with China and has lost ground in the days since the deal was announced. Prices for wheat, pork and dairy products have been similarly stable.
Soaring stock prices are a sign of broad optimism about the U.S. economy and likely some relief that trade confrontations are receding. At the same time, quiet commodities markets suggest investors and others don’t see foresee any big shifts in the supply of, or demand for, farm products.
Read the full report at The Wall Street Journal.