WASHINGTON (RFD-TV) — New fees are now in effect for Chinese-owned and built ships here in the U.S. The mandate took effect overnight. The Trump Administration officials say it is all to balance the scales, but some farmers worry it could mean less money in their pockets if shipping companies begin passing along those new fees.
The fee is $46 per net ton and applies to up to five trips a year, with payments made online through the treasury. China quickly hit back, saying it will charge similar fees on American ships starting at 400 CN¥ (Yuan) per ton and rising over the next few years.
Last night, China said that the fee will not apply to U.S. ships made in China. Officials on both sides say the costs are part of ongoing trade disputes over shipping and maritime rules.
And while the markets are looking to stabilize after a tough stretch in grains and oilseeds, Allendale’s chief strategist, Rich Nelson, says traders are still watching for signs of a rebound in soybeans, as tensions with China continue.
“We do expect some type of brief meeting between Trump and the Chinese president on October 31,” Nelson said. “The question we’re all watching is, will this result in any soybean buying, and if so, how much? So, without real confirmation of that type of story, we cannot suggest yet that soybeans need to rebound. And it still leaves the potential open, maybe for pricing under $10 even here. “
The current government shutdown means no major reports out of the U.S. Department of Agriculture (USDA). Nelson says that it did not matter much for last week’s WASDE report, but says next month could be a much different story.
“The October supply demand report, which we just missed last week -- most people probably had a relatively good explanation for what USDA would have given us, so I don’t think that would be the big surprise for us,” Nelson said. “Keep in mind, the big concern is really as we go into November, that’s when yield declines are typically seen with a little more severity. So, a lot of us are waiting on our yield story to maybe give it some more support. That’s probably still lined up here in next month’s potential supply-demand report.”
And speaking of reports, some are still delayed, but others, like the Consumer Price Index (CPI) report, will still be released in the coming weeks. The Bureau of Labor Statistics (BLS) is calling workers back to the office to disseminate that information. Right now, the BLS aims to have those numbers out on October 24.
Shaun Haney joined RFD News to discuss the potential impact of the Trump-Xi summit uncertainty, ongoing agricultural trade talks, and why geopolitical developments could carry important implications for farmers and global commodity markets.
