Much of 2018’s record US soyabean harvest may end up in storage as the country's largest buyer China has imposed a 25% tariff on the bean causing US prices and demand to fall. Good weather helped the this year harvest, but farmers also planted more seeds in the spring, expecting prices to hit record highs, mainly from Chinese demand. Economists are predicting that farmers will hold the oilseed in storage until the US-China trade war ends, eliminating the tariffs and bringing higher prices. The Trump administration is paying relief at $1.65 per bushel for half the crop.
Much of this year’s record US soyabean harvest may end up in storage as the country's largest buyer China has imposed a 25% tariff on the bean causing US prices and demand to fall. Good weather helped the 2018 harvest, but farmers also planted more seeds in the spring, expecting prices to hit record highs, mainly from Chinese demand. Economists are predicting that farmers will hold the oilseed in storage until the US-China trade war ends, eliminating the tariffs and bringing higher prices. The Trump administration is paying relief at $1.65 per bushel for half the crop.