The trade war between the U.S. and China is proving to be costly to U.S. farmers, just as President Trump announced the intent for further tariffs, escalating the tense state of affairs.
University of Illinois agriculture economist Scott Irwin this week on Twitter says the outlook has “moved into disaster territory,” specifically, regarding soybeans. And, Jim Bower of Bower Trading in his daily newsletter wrote: “At this point, it is hard to imagine the trade news getting much worse.”
New crop soybean futures have dropped roughly 20 percent since May 29th, and corn futures are down 16 percent since late May. For soybeans, the decline is near a dollar and a half per bushel, representing a loss of more than $6 billion on the 2018 soybean crop.
The American Soybean Association Tuesday linked the drop to the trade war, as President John Heisdorffer stated: “Soybean prices are declining as a direct result of this trade feud.” The statement says ASA is disappointed and highly concerned that trade tensions continue to ratchet up rather than de-escalate between the two countries.