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South Central Iowa | I hadn't looked, but checked it out.
The prices for soybeans in China has fallen 20-35% depending on the contract you look at.
Now, with restrictions on U.S. imports and this belief they will not import anything, there should be fears of scarcity. The price should rise for soybeans in China. The USDA this morning showed their imports dropping and reductions in their usage. That does not occur with falling domestic prices; there needs to be price rationing. Even if we want to attach the tariff on top of the reduced price, which is not how it occurs in a free and unmanipulated market, that places prices back at a normal location; a location that has seen tremendous growth.
Thoughts? With lower domestic prices, how will China reduce growth in consumption?
Edit: for those interested in prices, September soy is trading $13.88, down from a high of $15.78, and a couple weeks ago was at a low of $12.86. It's pretty common for their prices to be $6 or better above ours.
Edited by Conan the Farmer 7/12/2018 13:08
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Dalian (China) Soybean Prices
