Inside: Grains & Raw Material
Trump influences soybean price
The global political unrest is causing tensions in the soybean market. The reason for this is the announcement by US President Donald Trump in which he says he will introduce import tariffs on steel from next week.
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Choose the subscription that suits youThis concerns import tariffs of 25% (steel) and 10% (aluminium) and these would apply for a longer period. This leads to unrest, because countermeasures from the European Union are being considered. That would also be the case soy used could be. In the worst case, this could lead to a trade war, in which countries adopt protectionist policies.
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Trump's report has caused prices for soy meal in China to rise sharply. China, as the world's largest soy importer, cannot do without the production of soybeans from the United States (US). It was recently reported that the demand for soybeans from China would increase next year. Yet China is also considering imposing import duties as a countermeasure.
Drought in Argentina
However, the main reason for the soybean price rally is still the drought in Argentina. Once again a report showed that the soy yield will be reduced to 44 million tons. That is 11 million tons less than pre-season expectations. It means that global soybean production will be 3% lower.
Prices on the Chicago stock exchange rose to $1 per ton on Thursday, March 388,50, the highest level in 1 year. Soybean meal prices show an even stronger increase, rising to $434,50 per tonne.
The quotations of soy beans and meal show a strong price increase.