Political news put pressure on the price of soybeans
President trump expressed intentions for further restrictions on the presence of China in the U.S. market, and announced a possible ban on Chinese investment in American technology companies. Companies in which the share of Chinese investment is greater than 25% will limit the opportunity to invest in a technology company, USA.
After this announcement, the July soybean futures fell another 2.5% to 328 $/t Favorable weather conditions in the regions of soybean production, poor exports and a possible increase in acreage under soybean in the June report USDA will not allow in the near future to strengthen soybean prices.
the Export of soybeans from the U.S. last week fell by 37% to 514,2 thousand t, and in good and excellent condition are now 73% of soybean crops.
Trade war will continue to put pressure on prices as China is not going to give up their positions in front of US, then as the fight began to attract more and EU countries.
At talks in Beijing on Monday, China and the EU pledged to fight trade protectionism of the USA and stated that unilateral actions can cause recession and global economic crisis.
Vice-Premier of China Liu he, who is the chief economic Advisor to XI Jinping, announced that China and the EU decided to protect the multilateral trading system and oppose protectionism and unilateralism.