China unleashed a retaliatory tariff exactly one week ago on U.S. soybeans, but Canadian growers haven’t been able to escape the fallout.
early April when Beijing first disclosed plans for the 25 percent duty. Canada’s soy prices are closely tied the U.S. futures market so farmers from Quebec and Ontario to the Prairie provinces have taken a hit in terms of pricing along with American growers.
“The China-U.S. dispute is a negative for Canada in many, many ways because we are being caught in the crossfire,” said Benjamin Tal, the deputy chief economist of CIBC World Markets in Toronto.
Soybean futures for August delivery plunged as much as 2 percent to decade lows Friday a day after the U.S. Department of Agriculture forecast record stockpiles of beans in the 2018-19 crop year due to lower anticipated exports as a result of the trade war with China. It also hasn’t helped that talks have not produced any thaw in the trade war with China.
“We’re back on the trade fears once again here today,” said Ted Seifried, vice president and chief market strategist with Zaner Ag Hedge in Chicago. “It doesn’t seem like there’s any end in sight and things continue to escalate. And that’s why soybeans have continued to be under pressure.”