# Lashing back, China lets yuan drop, halts US farm purchases | AP News

> China let the yuan weaken to 7 per dollar for the first time since February 2008, raising concerns it would use its currency as a weapon. Beijing also halted US farm purchases in retaliation.

- Date: 2019-08-06 · published 2019-08-06T12:00:00.000Z
- Category: trade · region China · magnitude high
- Page: https://feedsoft.ai/events/5371-lashing-back-china-lets-yuan-drop-halts-us-farm-purchases-ap-news
- Commodities: [Soybeans](https://feedsoft.ai/c/SOY.md), [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

The halt in US farm purchases is a direct hit to US soybean export demand and is bearish for prices. The currency weakness also makes Chinese imports more expensive in dollar terms.

## Read by commodity

- SOY: bearish ▼
- USDCNY: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDCNY | 2019-08-07 | 5 | +2.6% | 3.9 | China's halt of US farm purchases in retaliation, alongside the weaker yuan, signaled trade-war escalation and weighed on the currency. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| SOY | 2018-05-09 | [China cutting US soybean purchases in face of tariffs threat \| AP News](https://feedsoft.ai/events/64913-china-cutting-us-soybean-purchases-in-face-of-tariffs-threat-ap-news.md) | +0.7% | -1.7% |
| SOY | 2019-05-30 | [China Halts U.S. Soybean Purchases, While USMCA Prospects Unfold Under a new Threat of Tariffs on Mexico - Farm Policy News](https://feedsoft.ai/events/58950-china-halts-u-s-soybean-purchases-while-usmca-prospects-unfold-under-a-new.md) | -0.3% | +2.6% |
| SOY | 2023-09-22 | [China cuts soybean purchases from the US in August](https://feedsoft.ai/events/14811-china-cuts-soybean-purchases-from-the-us-in-august.md) | +0.5% | +1.7% |
| SOY | 2023-04-24 | [US corn falls after China cancels purchases; drags wheat, soy lower](https://feedsoft.ai/events/10358-us-corn-falls-after-china-cancels-purchases-drags-wheat-soy-lower.md) | -2.6% | -11.9% |
| SOY | 2025-09-25 | [US-Argentine Deal Adds to Farm Groups' Frustration Over Lack of Chinese Purchases](https://feedsoft.ai/events/22902-us-argentine-deal-adds-to-farm-groups-frustration-over-lack-of-chinese-purchases.md) | +0.4% | +2.6% |
| USDCNY | 2019-08-05 | [Yuan devaluation draws new battle lines in US-China trade war \| Trade War \| Al Jazeera](https://feedsoft.ai/events/5373-yuan-devaluation-draws-new-battle-lines-in-us-china-trade-war-trade-war-al.md) | +1.8% | +3.1% |
| USDCNY | 2019-08-05 | [China lets yuan break key 7 level for first time in decade as trade war worsens](https://feedsoft.ai/events/5368-china-lets-yuan-break-key-7-level-for-first-time-in-decade-as-trade-war-worsens.md) | +1.8% | +3.1% |
| USDCNY | 2024-11-07 | [China’s yuan falls to near 3-month low on weaker fixing, tariff worries - Markets - Business Recorder](https://feedsoft.ai/events/6858-china-s-yuan-falls-to-near-3-month-low-on-weaker-fixing-tariff-worries-markets.md) | +0.7% | +1.3% |

## Sources

- apnews.com: https://apnews.com/article/d410438898b548a48d679b64f17e9084

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.