Posted on 07/06/2018 3:04:21 PM PDT by SpeedyInTexas
U. S. soybean exports surged in the second quarter, delivering an outsize boon to economic growth even as China shifted much of its sourcing to Brazil in response to its worsening trade relations with the U.S.
The value of soybean exports nearly doubled in May from April to a seasonally adjusted $4.14 billion, driving the U.S. trade deficit to its narrowest margin since October 2016, the U.S. the Commerce Department said Friday. Weekly data on grain shipments from the Agriculture Department show export volumes may have been even stronger during much of June.
(Excerpt) Read more at wsj.com ...
If China buys soybeans from Brazil instead of the US, other countries that normally would have bought from Brazil, will now buy from the US. Soybean farmers are going to do just fine.
Another interesting note from the article: "Ian Shepherdson, chief economist at Pantheon Macroeconomics, said soybean exports alone will likely add 0.6 percentage point to annualized second-quarter GDP growth after seasonal adjustments."
Expect 2nd quarter GDP to be above 3%, likely above 4% with a chance for 5%!!!
Earlier on FR, I read something that they Chinese are looking elsewhere for soybeans and I was worried. Glad to hear this.
OMG Chinese tarriffs on American farm goods, has American farmers switching to other markets and increasing their exports anyway. Hmmm. It’s contrary to most WSJ reports claiming Trump’s tarriff toss up with China is hurting Trump in the farm belt.
I have a positive suggestion to avoid the Chinese tarrifs. Change crops!!! We are finished with the trade deficit. If it takes soy bean sales to China which is only 27% of your sales, so be it. If soy beans go up here beyond my price point I refuse to buy them. Quit moaning that we should subsidize China so you can sell soy beans there. We really do not care.
From the story: "U.S. farmers are hardly celebrating. China’s announcement of retaliatory tariffs on April 4 came months after a bumper U.S. soybean crop last year, and the two factors sent prices from around $10.50 a bushel earlier this year to around $8.50 in recent weeks.
Given the cost of land and machinery, the average soybean farmer breaks even at around $9.50 a bushel, said John Heisdorffer, an Iowa grower who serves as president of the American Soybean Association. “Farmers are now well into the red,” he said."
Doesn't look like they're fine to me.
Well, there are only a certain amount to beans for sale, so this is logical. I’ve been saying so for a month, but nobody pays attention to me. Maybe they’ll believe the WSJ.
Of course the WSJ had to take a positive story and put an anti-tariff spin on it.
Soybean prices dropped because of tariffs. As other countries turn to the US for soybeans, guess what will happen? Prices will rise. Supply and demand.
Soybean prices today: $8.74. Up 5% in 1 day. Your negativity wants me to check on the prices periodically. I’ll let you know when they cross $9.50 and $10.50.
http://markets.businessinsider.com/commodities/soybeans-price
Will Brazil figure out China is ripping them off ,LOL
Earlier on FR, I read something that they Chinese are looking elsewhere for soybeans and I was worried. Glad to hear this.
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Just like oil, many agricultural products are sold in worldwide markets.
Actually, China is getting ripped off.
Brazil prices are UP, UP, UP compared to US prices. With China trying to avoid US soybeans, they have to pay up for Brazil’s soybeans. Brazil is the only other major source.
“Chinese buyers are importing Brazilian soybeans at around
$425.85 a tonne, C&F, compared with U.S. beans quoted at $355.22 a tonne”
Or we could cook more Korean food here and make bean paste stew and dips for Korean barbecue using American soybeans. Have it manufactured here. An entrepreneur, a Vietnamese man manufactures Siracha hot sauce in CA, and has made a mint.
Recipe for Korean hot bean paste dip. I dab this on a lettuce leaf and wrap it around a piece of Korean bbq beef or my fave, pork belly.
via https://www.maangchi.com/recipe/ssamjang
Ingredients
¼ cup doenjang (fermented soybean paste)
1 tbs gochujang (hot pepper paste)
1 stalk of minced green onion.
1 clove of minced garlic.
¼ cup chopped onion.
2 ts honey.
2 ts toasted sesame seeds.
2 ts sesame oil.
Soybeans went on sale... so more buyers came.
Funny how that works.
There will always be a ready market for every soybean grown. Only my demagogish congresswoman doesn’t know this.
Today: “Futures for November delivery (of soybeans) climbed 4.5 percent to $8.945 a bushel on Chicago Board of Trade, the biggest gain since the contract began trading in late 2014.”
“While purchases have slowed from China, the world’s biggest importer, American soybeans got so cheap that other countries have started to increase purchases, U.S. government data show.”
“China has been shifting to supplies from Brazil. Soybean premiums at Brazilian ports have surged in recent weeks on expectations that China will boost purchases.” ==> China is getting screwed on soybean prices. HaHaHa.
Trump is a businessman. Why would he do something that would destroy our economy and seriously hurt American interests?
The answer.......He wouldn’t. Our leftist media is not going to be intellectually honest about the tariff battle. It’s another wedge issue for them and their crumpling democratic party.
At the end of the day......Trump will again win and they will go back to wagging their tails between their legs. By the time the mid terms roll around, the tariff skirmish will be settled.
Yes they will. But the reverse of that is why we should have general import tariffs, and not just targeting China. Though I'm okay with targeting China as they have been in a trade war with us for a long time and we haven't been fighting back.
What I have read, a couple months ago, is that the south american crop is short. SOOOO....
Wait and see.
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