The extent to which hope for a solution to the U.S.-China trade dispute has dominated the soybean market has been previously discussed here. Soybean futures prices gave up something like $2.00/bushel when China quickly expanded the conflict by setting a 25 percent tariff on U.S. soybean imports. That action then forced Chinese buyers to seek Brazilian soybeans, which pushed those prices to a huge premium of about 25 percent over U.S. stocks at one point, enough to cover the cost of the tariff. However, the Chinese government let it be known that it did not favor imports of U.S. soybeans even if it were economic to do so. Thus, the situation effectively became an embargo. With soybean prices having cratered as a result of political decision...

TAGS – Soy & Oilseeds, China, North America, South America