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Chinese buyers canceled purchases of nearly $140 million of U.S. soybeans just before tit-for-tat tariffs took effect. Farm groups for hogs, soybeans and wheat say members face hard times, and Canada, Mexico and the EU have also imposed tariffs on U.S. farm goods.
Cancelled Chinese orders and retaliatory tariffs across several markets cut export demand for U.S. soybeans and related feed products, which is bearish for U.S. soybean prices and supports a search for new buyers.
agriculture.comChuck AbbottJul 9, 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 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.
After 65 past neutral trade events, Live Cattle moved a median +0.3% over 5 sessions (57% higher; middle half -0.5% to +1.4%), and +2.5% over 20.
After 123 past bearish trade events, Lean Hogs moved a median -0.4% over 5 sessions (43% higher; middle half -2.9% to +2.0%), and -0.2% 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.
Chinese buyers cancelled about $140 million of US soybean purchases just before tariffs took effect, a direct demand loss that weighed on prices.
