> farmers can’t sell anything because retaliation has destroyed international demand
Not true. At least not yet.
Q2 agricultural exports were roughly flat to Q1 [1].
Not true. At least not yet.
Q2 agricultural exports were roughly flat to Q1 [1].
“Overall, export sales of this fall’s (U.S.) soybean crop are down 81% from the five-year average,” Brasher reported.
When it comes to soy, America has enormous leverage and China already accepted they're negotiating from a position of weakness.
…Basse says soybean importers aren’t just snubbing U.S. soybeans. They are specifically being told by the Chinese government to not buy U.S. beans.
“So, if you’re a Chinese importer or a Chinese crusher, you’ve been told by the government not to buy U.S. soybeans until they tell you to. This is how China works. Today the Chinese have a stronghold on buying United States soybeans, even though our prices are nearly $1 a bushel cheaper than what they’re buying in Brazil. This is the pressure that I believe the Chinese government is trying to apply on the Trump administration during a trade negotiation,”…
You either have to find a way to consume what is already in the pipeline or go without. Governments are very sensitive to the food security implications because there isn’t much slack politically to “go without”.