Karl Plume, Reuters, does an excellent job explaining what US/China proposed tariffs on soybeans is already doing to trade patterns here…
China still needs soybeans:
”But accelerated buying of Brazilian beans by Chinese importers, weary of potentially paying steep tariffs on U.S. purchases, has sent Brazilian export premiums to historic highs.
Near-term soybean shipments from Brazil peaked near 200 cents above CBOT May soybean futures SK8 before pulling back to around 170 cents over by the end of the week, traders said. U.S. Gulf Coast shipments, by comparison, were only around 90 cents a bushel above futures.”
And this:
”The USDA said 458,000 tonnes of U.S. soybeans were sold to undisclosed destinations, which traders and grains analysts said included EU soybean processors such as the Netherlands and Germany.
If the entire volume is confirmed to be going to the European Union, it would be the largest one-off sale to the bloc in more than 15 years, according to USDA data. The USDA could not immediately be reached for comment.”
Lower prices for US producers, higher prices for Chinese consumers…
Leave a Reply