A trade war could change the structure of sown areas

2018-03-28 12:10:12
Machine translation
A trade war could change the structure of sown areas

Introduced by some countries import duties for agricultural products will substantially alter global balances, which will lead to a jump in prices for oilseeds and cereals.


After the introduction last year India's duties on peas and lentils, the world prices for pulses fell by 20-40%. This year Canada, which is the largest producer of legumes, reduce the seeding of lentils at 27% and peas – to a minimum of 7 years in favour of wheat and canola prices compared to the previous MP has grown significantly and will continue to remain high.


Due to falling production in Argentina, the increase in soybean prices will force American farmers to expand their soybean crops from 90 to 91 million acres and reduced corn crops from 90 to 89 million acres. For the first time in 35 years, will sow more soybean than corn, but not the final indicator. The dispute between the US and China is gaining momentum and final answer to trump introduced import duties on Chinese goods worth 60 billion $ not yet.


China has said it is ready to deliver a powerful blow to the American economy and even political stability. The prohibition or restriction of imports to China of soybeans from the United States will damage not only the U.S. economy, but  farmers, most of whom voted for Trump, and now suffering losses because of his actions.


currently, traders expect forecast USDA for crop acreage in 2018, which will be released on Thursday, and watch the actions of China in response to US sanctions.