Loading…
China announced a 25% tariff on U.S. soybeans, added to an existing 13% tariff, and extended similar increases to corn, wheat, sorghum, cotton, beef and other goods. The move was a response to the Trump administration's $50 billion tariff package.
Roughly two-thirds of U.S. soybeans are exported, so the retaliation threatens demand.
Losing Chinese demand for U.S. grains and oilseeds is bearish for U.S. prices, and it may shift export flows to Brazil and other suppliers.
agproud.comMike NorthMay 4, 2018After 803 past bearish trade events, Soybeans moved a median +0.0% over 5 sessions (51% higher; middle half -1.7% to +1.7%), and +0.9% over 20.
After 683 past bearish trade events, Corn moved a median -0.2% over 5 sessions (47% higher; middle half -1.7% to +1.6%), and +0.3% over 20.
After 375 past bearish trade events, Wheat (SRW) moved a median -0.2% over 5 sessions (47% higher; middle half -2.0% to +1.1%), and -0.1% over 20.
Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
