Source https://www.foodpolitics.com/2018/09/a-glimmer-into-the-stunning-effects-of-our-trade-war-with-china/
I find the details of trade policy almost impossible to understand (so many arcane rules, so many countries), and am grateful whenever I read something crystal clear.
Politico explains (behind a paywall, alas) how our trade war with China is hurting US soybean farmers, beginning with:
The good news: The European Union is buying lots more US soybeans than it used to. Purchases are up 133% over last year, and now account for 52% of EU soybean imports.
The bad news: The EU is buying US soybeans because they are cheap. Because China is not buying US soybeans, there is a glut; prices have fallen by 20%.
Estimates are that the EU will buy $2.5 billion this year. But last year, China bought $12.3 billion in soybeans. That’s nearly a $10 billion loss unless other buyers can be found (the estimate is a $7 billion loss).
China is now buying soybeans from Brazil, and at premium prices.
Here’s what the American Soybean Association has to say about all this.
One more indicator: Politico also mentions an <a href="https://www.jsonline.com/story/money/2018/09/20/desperate-dairy-farmers-use-gofundme-save-way-life/1351512002…
Source https://www.foodpolitics.com/2018/09/a-glimmer-into-the-stunning-effects-of-our-trade-war-with-china/
I find the details of trade policy almost impossible to understand (so many arcane rules, so many countries), and am grateful whenever I read something crystal clear.
Politico explains (behind a paywall, alas) how our trade war with China is hurting US soybean farmers, beginning with:
The good news: The European Union is buying lots more US soybeans than it used to. Purchases are up 133% over last year, and now account for 52% of EU soybean imports.
The bad news: The EU is buying US soybeans because they are cheap. Because China is not buying US soybeans, there is a glut; prices have fallen by 20%.
Estimates are that the EU will buy $2.5 billion this year. But last year, China bought $12.3 billion in soybeans. That’s nearly a $10 billion loss unless other buyers can be found (the estimate is a $7 billion loss).
China is now buying soybeans from Brazil, and at premium prices.
Here’s what the American Soybean Association has to say about all this.
One more indicator: Politico also mentions an <a href="https://www.jsonline.com/story/money/2018/09/20/desperate-dairy-farmers-use-gofundme-save-way-life/1351512002…
What Do You Think?
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