Soybean sale to China down 94%

It’s a record year for soybeans across the Midwest, but the harvest is just sitting there. China, the largest buyer of U.S. soybeans, shut its doors in retaliation for U.S. tariffs. Sales have dropped by 94 percent from last year. The hope is that prices will rise before the beans rot.

Share this post


Link to post
Share on other sites

Using a law from the great depression Trump has provided the first round of $12 billion in subsidizes to farmers to help compensate from the damage caused by tariffs. Guess who has to pay for that?

  • Upvote 1

Share this post


Link to post
Share on other sites

3 minutes ago, Cokiga Damke said:

Using a law from the great depression Trump has provided the first round of $12 billion in subsidizes to farmers to help compensate from the damage caused by tariffs. Guess who has to pay for that?

The Mexicans?

Share this post


Link to post
Share on other sites

4 minutes ago, Cokiga Damke said:

Using a law from the great depression Trump has provided the first round of $12 billion in subsidizes to farmers to help compensate from the damage caused by tariffs. Guess who has to pay for that?

Farmers are the backbone of any country, and that includes the USA, a country originally founded on farmers wanting a new start. While admittedly I am not a fan of farm subsidy, I salute American farmers.

Share this post


Link to post
Share on other sites

Just now, Nigerian Price said:

Farmers are the backbone of any country, and that includes the USA, a country originally founded on farmers wanting a new start. While admittedly I am not a fan of farm subsidy, I salute American farmers.

agreed

Share this post


Link to post
Share on other sites

11 minutes ago, Hajga Loma DK said:

It’s a record year for soybeans across the Midwest, but the harvest is just sitting there. China, the largest buyer of U.S. soybeans, shut its doors in retaliation for U.S. tariffs. Sales have dropped by 94 percent from last year. The hope is that prices will rise before the beans rot.

Meanwhile, US soybean prices are down 5% from last year, while soybean futures have plummeted 20% in just 6 months.

Share this post


Link to post
Share on other sites

Here in Minnesota farmers exported $2.1 billion in soybeans in 2016, making them the state’s top export crop. But now many farmers cannot afford to sell because tariffs have driven the purchase price for soybeans so far below the break-even point of $9 a bushel.

  • Upvote 1

Share this post


Link to post
Share on other sites

(edited)

Meanwhile people in Venezuela are starving. New market ready to be seized... Just need some political leadership to end that human suffering. 

Edited by Rasmus Jorgensen

Share this post


Link to post
Share on other sites

13 hours ago, Rasmus Jorgensen said:

Meanwhile people in Venezuela are starving. New market ready to be seized... Just need some political leadership to end that human suffering. 

It's too bad Maduro stole all of the Venezuelans' money, so now they can't afford to buy those soy beans even if they wanted.  Maduro could buy them for his people, though.  He is sitting on billions of dollars worth of gold.  But he won't, because his gold is worth more to him than the lives of the people he swore to protect.  

Share this post


Link to post
Share on other sites

It could not happen as long as Maduro is in power, of course. I was just trying to illustrate that if a plan suggested on this forum was followed then some good things could be accomplished. American farmers would have new market. The Venezuelan people would not starve. The US would stick it to China in more ways than one. win-win-win.  

  • Like 1

Share this post


Link to post
Share on other sites

4 hours ago, Rasmus Jorgensen said:

It could not happen as long as Maduro is in power, of course. I was just trying to illustrate that if a plan suggested on this forum was followed then some good things could be accomplished. American farmers would have new market. The Venezuelan people would not starve. The US would stick it to China in more ways than one. win-win-win.  

Are you referring to the plan that @Jan van Eck put forward, with ships/supplies/personnel landing on the East side of the country by sea?

Share this post


Link to post
Share on other sites

On 11/6/2018 at 9:52 AM, Cokiga Damke said:

Using a law from the great depression Trump has provided the first round of $12 billion in subsidizes to farmers to help compensate from the damage caused by tariffs. Guess who has to pay for that?

The overall populatìon

Have we not yet understood  that any subsidy is paid by someone.

Share this post


Link to post
Share on other sites

In truth though - I do not know about about soybean processing to say whether it would be an immediate fix. It was more to illustrate if Venezuela were freed then they would be obvious candidate for a new export market. China gets it doubly - they loose a "colony" and they their tariffs against US agriculture won't work. 

#freemarket # capitalism 

  • Upvote 1

Share this post


Link to post
Share on other sites

39 minutes ago, polibio r. Diaz said:

The overall populatìon

Have we not yet understood  that any subsidy is paid by someone.

That is only partly true. 

If - big if - the country paying out those subsidies also collects tariffs on other goods, and if - big If - the tariffs are n effect taken from the exporting offshore entity, simply because world market pricing prevents shovelling that sum onto the wallets of the domestic Buyers, then the funds collected from the tariffs can be directed to the subsidy payments to the farmers. 

Here, the Chinese attempt to export to the USA, but are faced with a tariff wall.  In order to maintain their market share, they have to eat the tariff, by lowering the pricing.  Thus the collected tariffs allow the US Treasury to use Chinese money to pay the subsidies to the soybean farmers.  That is an unusual set of circumstances, but I anticipate that that was part of the planning in Washington.  

  • Like 1

Share this post


Link to post
Share on other sites

1 hour ago, Jan van Eck said:

That is only partly true. 

If - big if - the country paying out those subsidies also collects tariffs on other goods, and if - big If - the tariffs are n effect taken from the exporting offshore entity, simply because world market pricing prevents shovelling that sum onto the wallets of the domestic Buyers, then the funds collected from the tariffs can be directed to the subsidy payments to the farmers. 

Here, the Chinese attempt to export to the USA, but are faced with a tariff wall.  In order to maintain their market share, they have to eat the tariff, by lowering the pricing.  Thus the collected tariffs allow the US Treasury to use Chinese money to pay the subsidies to the soybean farmers.  That is an unusual set of circumstances, but I anticipate that that was part of the planning in Washington.  

Yes and no. 

Assuming tariffs were collected and soybeans exported elsewhere then the collected tariffs could have been put other use. I can think of atleast 1 major unfunded Trump campaign promise... 

Share this post


Link to post
Share on other sites