Chinese importers have already stopped buying U.S. wheat, soybean purchases are expected to drop even further, and the U.S. ag sector is expecting the financial pain to increase exponentially as long as the Trump administration persists in a trade war with China.
President Donald Trump today announced the U.S. will hit China with $50 billion worth of tariffs on more than 1,000 Chinese productds, taking the U.S. closer to a trade war with the Asian nation, which has threatened to hit back with tariffs on U.S. soybeans, wheat, corn and other commodities.
You won’t find any tourists in the muddy, mosquito-ridden town of Barcarena in Brazil’s state of Pará, but you can’t miss the almost constant parade of trucks pulling in and out of port facilities under the scorching sun or torrential rainfall on the country’s northern coast.
Prospects for U.S. farm exports can change suddenly and dramatically. Breaking into foreign markets takes decades of persistent hard work and hefty investments in building infrastructure, relationships and, ultimately, sales.
The leaders of Japan and the other 10 remaining countries in the renamed Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) signed off on the sweeping trade pact last Thursday and many in the U.S. ag sector are worried they’ll suffer from being left out.
U.S. corn and soybean production will be smaller than the previous year based on fractionally lower planted acreage and trend yields, USDA said today in its first projections for major crops for the 2018-2019 crop year.