NEW YORK — The ongoing trade war between the United States and China is taking its toll on U.S. agricultural goods, especially soybeans.
According to Bloomberg, soybean futures are at their lowest point since the financial crisis in 2008, reaching below $8 per bushel.
With the recent African Swine Fever outbreak in China, purchases of U.S. soybeans by overseas hog producers have been steeply curbed. Other livestock feed also has the potential to follow suit.
In addition, the potential exists that other U.S. product purchases such as soy and pork would be cancelled before they were even delivered.
Bloomberg data shows China’s purchase of 7.4 million metric tons of soybeans that was made earlier in the year has not been shipped. The purchase was initially made as a goodwill gesture prior to the current trade war.
In order to keep agriculture operations running, President Trump announced crop purchase pledges by the United States government to offset sluggish sales to China. However, it is not clear just how much help that will provide producers.
To learn more about soybeans and other U.S. agricultural markets as product futures tumble, visit Bloomberg’s website.