Trump fights with China and suffers from soy: broke the U $ S 300 in Chicago

Favio Ré

The decision of the US President, Donald Trump, to increase tariffs on products imported from China and add them to those who did not own them, had an impact on the price of soybeans. one of the main products of the Asian giant he buys to the North American nation.

The United States has for many years lost 600 to 800 billion dollars a year in trade. With China, we are losing $ 500 billion. Sorry, we're not going to do that anymore!

– Donald J. Trump (@realDonaldTrump) May 6, 2019

In the Chicago market, the oil company traded at less than $ 300. In fact, the contract reached $ 295 per tonne in May, close to $ 9 or 2.89% less than last Friday. Then it stabilized at $ 298.

Flour and oil, products of which Argentina is the world's largest exporting producer, also fell sharply in the world's leading reference market.

Chicago deepened the losses @carlosetchepare @SecAgropecuario @PBYagro pic.twitter.com/DR1ryK8vFB

– Javier Buján (@vjbujan) May 6, 2019

As there is still room for the day's closing and values ​​can continue to change, it would in principle be the lowest value of the 299 dollars reached last August, seven months ago. But if the current closing value was ultimately lower than this figure, it could be one of the worst of over a decade.

According to the researcher of the Eastern Mediterranean Foundation, Juan Manuel Garzón, $ 295 would be the lowest price since July 2007, while the monthly average indicated a soybean of $ 290 per ton. The economist Gonzalo Agusto, of the Córdoba Grain Exchange, expressed the same opinion.

Chicago soybeans … With the current DEX plan, margins close because yields are above average. As we have already said: the volume offsets the prices … But if you have returned them, they would have been "normal", the figures not closing on the ground. pic.twitter.com/j47D3LsSha

– Gonzalo Agusto (@gonzaloagusto) May 6, 2019

But in 12 years, the United States had an inflation of 21%. By calculating this parameter, the current value would be the lowest since September 2006, said Garzón.

This is consistent with the record that the indexmundi.com page has and which peaks in December 2006 as the month with a similar previous quote: $ 297.

Soy
[1996 – 2019] #tradewar#FinViz pic.twitter.com/l758TYgD4s

– Esteban Moscariello (@moscarielloe) May 6, 2019

In any case, the collapse of prices in Chicago will not necessarily mean a decline in Argentina, because by reducing its purchases in the United States, China will refocus on South American supply, which could help keep local prices at least at current levels.

The sudden continuation of the trade war between the United States and China will lead us to another price drift. We do not have peace Only a truce would bring tranquility

– Salvador Di Stefano (@SalvaDiStefano) May 6, 2019