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President Trump announced a fresh 10% tariff on another $300 billion of Chinese goods, effective September 1, after bilateral talks made little progress. He accused China of not honoring commitments to buy more U.S. agricultural products.
Chinese Foreign Minister Wang Yi criticized the move, and markets fell sharply in response.
Tariffs on the broad range of Chinese imports and the complaint about unmet farm purchases point to reduced U.S. agricultural export demand to China. That is bearish for soybeans and other U.S. feed grains.
agronews.com.plMałgorzata KulmaAug 5, 2019
bbc.comAdd as preferred on GoogleAug 1, 2019
cnbc.comReutersAug 1, 2019
nutraingredients.comHank SchultzAug 2, 2019After 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 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.
Not enough comparable past events yet for a historical read.
After 80 past bearish trade events, Crude Oil (WTI) moved a median -2.2% over 5 sessions (30% higher; middle half -6.9% to +0.8%), and -1.5% 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.
The new 10% tariff on $300B of Chinese goods triggered the trade escalation and recession fears that hit crude demand expectations.
The Aug 1 tariff escalation and accusation that China wasn't buying US farm goods raised fears of lost export demand, setting up the sell-off that carried into Aug 5.
