Trade War‘s Long-Term Damage to U.S. Soybean Sector It has now been over 13 months since China imposed a 25 percent tariff on U.S. soybeans in response to the Trump administration’s tariffs on imports from that country. As a result of the retaliation, U.S. soybean exports in 2018/19 are forecast to drop over 20 percent to 46.266 MMT. This is directly attributable to the decrease in shipments to China to only 11.222 MMT versus 27.616 MMT a year ago and 35.256 MMT at this point in 2016/17. While there has been an increase in exports to other markets because of the dispute, it is far less than the decline in shipments to the Middle Kingdom. As much as this has cost the U.S. soybean sector in reduced exports and lower prices in th...
From WPI Consulting
Forecasting developments in production agriculture
On behalf of a private U.S. agricultural technology provider, WPI’s team generated an econometric model to forecast the movement of concentrated corn production north and west from the traditional U.S. Corn Belt. WPI’s model has subsequently provided quantitative support to a multi-million-dollar investment into short-season corn variety development. WPI’s methodology included a series of interviews with regional grain elevators and seed consultants. Emphasizing outreach and communication with stakeholders who possess intimate sectoral knowledge – on-the-ground insights – is a regular component of WPI’s methodologies, made possible by WPI’s ever-growing network of industry contacts.