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Bloomberg reported China has put purchases of U.S. soybeans on hold as the trade war escalated, though no existing purchases are expected to be cancelled. President Trump also threatened escalating tariffs on all Mexican imports starting June 10 while USMCA ratification is pending.
A halt in Chinese state buying removes a key source of soybean demand, pressuring soybean prices and shifting trade toward Brazil. Tariff threats on Mexico also put U.S. meal and grain export demand at risk.
farmpolicynews.illinois.eduKeith GoodMay 30, 2019After 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 384 past bearish trade events, Soybean Meal moved a median -0.2% over 5 sessions (47% higher; middle half -1.7% to +1.6%), and -0.5% 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 13 past neutral trade events, US Dollar (Broad) moved a median -0.3% over 5 sessions (31% higher; middle half -0.7% to +0.1%), and -0.6% over 20.
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.
