"So China buys soy from Russia, and pays a higher price. I guess that Europe, where the Russians had been selling their soy will now buy their soy from the US. Last I looked, the price of Soy is stable. There is a huge demand world wide for that product. Cheep protein is in demand.
#5 | POSTED BY DOCNJO AT 2019-05-19 12:20 PM"
The Rule of Thumb in sales is that it can cost five times as much to get a new customer as it does to retain an old customer. The Chinese, who have been merchants for MILLENNIA, understand that the value of relationships in commerce far exceeds mere cost. Eventually, the whole tariff issue will get sorted out, but that does not guarantee that the Chinese will return and be as good customers as they were in the past. Tariffs MIGHT be a useful tool, but the current manner/timing of their implementation by the US is being perceived as petty and reckless. That should be obvious to Mr. "Art of the Deal".
"Before the tariffs, soybeans were one of the brightest lights among U.S. exports -- being the number one agricultural export. China, our largest trading partner, purchased about $14 billion (nearly 60 percent of exports) worth of soybeans annually.
The China market did not appear overnight. Soybean farmers have worked with the Department of Agriculture for 60 years to develop foreign markets for soybeans and have seen the value of annual U.S. soybean exports to China grow from $414 million in 1996 to more than $14 billion in 2017.
As a result of China's prolonged tariff on soybeans, we have seen only 13.3 million metric tons of soybeans shipped to China since last September, less than half of what was shipped by this time last year."