Soybean farmers in Canada are feeling the impact of the U.S.-China trade war as soybean prices decline. CNBC reports that while Canadian soybean farmers could see an increased market share from importing nations, experts say the current soybean market plays a much more significant role.
Since April, soybean futures have dropped nearly 20 percent in the United States, and Canadian soybean prices are closely tied to the U.S. futures market. A market expert from Canada says “we are being caught in the crossfire” of the U.S.-China dispute. A market advisor based in Winnipeg claims “North America has really become one large agricultural market with no border,” adding all soybeans grown in Canada are priced “basically directly off the U.S. futures market.”
China has forecast its total soybean imports will be lower for the next crop year due to the new tariffs. China is also encouraging the use of alternative animal feeds, as China currently buys about two-thirds of the world’s soybean exports, using most of it as feed for the roughly 700 million pigs in the country.