Friday, October 4, 2024

Commodity Prices

      Prices for corn and soybeans are low. Perhaps slightly above a farmer's break even point. Inputs now are so expensive farmers need both good yields and prices for profit. Part of the reason for the current low prices is Trump's China trade war which he said are "easy to win." Trump imagines that tariffs are paid by the exporting company but in fact they are paid by consumers. With Trump's China trade war China shifted to buy more agriculture products from South America costing American farmers loss of market. Those losses continue today.

   Now North Dakota State University has released a report showing that future additional American tariffs will be costly to American farmers. Trump continues to advocate for more tariffs.  This is a quote from that NDSU report.

"If the next president slaps new tariffs on imports from other countries, those trading partners will likely retaliate with their own tariffs that could cost the U.S. billions in lost agriculture exports.

That’s according to a recent analysis from North Dakota State University (NDSU) researchers who looked ahead at the possibility of a trade war to come based largely on former President Donald Trump’s tariff proposals. In a “worst-case scenario” that targets China with the highest tariffs, soybean exports could drop 67% — or more than $15 billion — since China is the largest buyer of U.S. soybeans."  Minneapolis StarTribune October 4, 2024


   To read the report click on the blue print.


Takk for alt,


Al


              Today's random photo is with the kangaroos in Australia. 



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