The resumption of negotiations between the US and China raises the price of soybeans

2019-07-25 12:08:40
The resumption of negotiations between the US and China raises the price of soybeans

Yesterday the price of soybeans rose on the background of statements about China's duty-free purchase by private processors 3 million tons of U.S. soybeans and the decision of the U.S. government to allocate $ 16 billion to support farmers.

 

Minister of agriculture of the United States Sonny Perdue announced that farmers, as affected by a trade war with China, will receive a minimum of $15/acre payment. On the question of where the government will take additional $ 16 billion, the Minister said that a detailed plan will be announced at the end of the week.

 

American farmers who were the main voters of President trump, the most affected from a trade war with China. Delivery main export products - soybeans to China fell in 2018 to 16-year low.

 

last year, USDA planned to allocate $ 12 billion to compensation of low prices for agricultural products and loss of sales.

 

the Executive Director of the Association of soybean producers of Illinois said that a $15/acre payment stabilize the situation for farmers who pay their loans. Now farmers still concerned about the prospects of the next harvest of soybeans and corn.

 

Recall that the presidents of the United States and China have agreed to resume trade negotiations. Trump has promised not to impose new tariffs if China will actively buy U.S. agricultural products. However, until now their China promises not kept.