Soybean growers have a strong message for the Trump Administration. One group says they are under extreme financial stress, and tariffs are making it worse.
With China largely absent from the buying table, the American Soybean Association is calling on the White House to ease up on Chinese tariffs.
In a 10-page paper outlining the situation, the group warns that time is running out, and farmers could pay the price. They say tariffs against China have had a limited impact on soybeans so far, but with harvest around the corner, that will soon change. China imports as much as 60 percent of the world’s soybean supply, but the group warns retaliatory tariffs make U.S. beans 20 percent more expensive, driving China to places, like Brazil.
The Soy Transportation Coalition is also weighing in, saying China has been the ideal customer for a number of reaons. They have a large population with growing incomes, they consume large amounts of pork and poultry, and they cook with a large volume of oils. Executive Director Mike Steenhoek says a lot of rural America’s growth over the last 30 years has been because of the Chinese market and the ability for U.S. soybean growers to export there.
One trader said the products entering the U.S. are primarily grind and trim, noting that the volume and type of beef, on its own, should not cause a major disruption. However, he says fund traders are reacting heavily to headlines rather than market realities.
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