U.S. Farm-Export Prices Drop Most Since 2011

Snow96 · 2018-08-14T18:32:14.271Z

Don’t know if they will or won’t. Farmers Might find a new buyer (since china is buying from someone else now, the people they were supplying will be looking for the product).

Just have to wait and see how it plays out. In the long run if we can get tarrif’s on are products we export reduced, and get china to crack down on theft of intelectual property it will pay huge dividends.

conan · 2018-08-14T18:33:15.523Z

Are you denying South America bumper crop this year isn’t effecting prices?

conan · 2018-08-14T18:35:18.111Z

Exactly. Funny how commodities work.

Drs · 2018-08-14T18:38:02.746Z

Alot of these tariffs are retaliatory tariffs.

As I posted in the trade war thread even the heritage foundation showed there was mechanisms for addressing grievances that have not been used without damaging American farms and businesses.

dantes · 2018-08-14T18:38:14.845Z

A better question is whether the bumper crop is affecting prices in South America. China is paying Brazil 20% more per ton of soybeans than they pay us.

Are you denying that tariffs aren’t affecting the profitability of US farmers?

conan · 2018-08-14T18:42:06.583Z

Funny how you avoided answering my question.

In 2011 you said they had bumper crop yield for price drop.

I pointed out that they had bumper year again this year and you ignored it.

Why?

Is their a point you’re trying to make? Crops is a commodity. Do you understand what is a commodity?

Drs · 2018-08-14T18:42:27.438Z

Not to the extent that the tariffs are affecting prices.

South American traders are getting great prices. They are also buying the soybeans from US farmers for a low price.

conan · 2018-08-14T18:44:10.589Z

Things level itself out…except China is ending up paying more.

dantes · 2018-08-14T18:51:25.024Z

I don’t know the answer and I think it’s the wrong question for the situation. If you do have answer, please share it.

There is a large price spread between US and South American soy beans. If the drop in US prices were because of a bumper crop in South America, then you’d expect the price in South America to drop at the same time. That’s not necessarily guaranteed to happen since just a few months ago, South American export prices were substantially higher than US export prices. I don’t know if export prices have dropped in South America. The most recent month of data I can find is May 2018.

conan · 2018-08-14T19:00:07.181Z

It means China is willing to pay more to punish United States for their soybeans.

dantes · 2018-08-14T19:03:50.748Z

conan:

It means China is willing to pay more to punish United States for their soybeans.

Yeah, no kidding. It’s also exactly what I said would happen.

Drs · 2018-08-14T19:44:45.790Z

It means China was not going to be bullied. Trump is trying to bully countries like they are a contractor desperate for money.

conan · 2018-08-14T19:47:56.317Z

Or maybe China doesn’t fully understand capitalism.

dantes · 2018-08-14T19:49:25.345Z

Do we understand capitalism? Because we are doing the exact same thing.

Drs · 2018-08-14T19:54:00.769Z

USGI

Resource Listing | USGI

Jezcoe · 2018-08-14T19:55:53.875Z

dantes:

Do we understand capitalism? Because we are doing the exact same thing.

Maybe they don’t. Capitalism is inherently about the short term.

China seems to be thinking in the long term.

Chris · 2018-08-14T20:21:16.169Z

The only good thing about these tariffs is that it can help the Democrats take back control of the House this November.

armycowboy · 2018-08-14T20:24:16.942Z

conan:

It means China is willing to pay more to punish United States for their soybeans.

And the US is being forced to pay more for Chinese goods Trump slapped a tariff on.

Oryx · 2018-08-14T20:29:42.062Z

Jezcoe:

Capitalism is inherently about the short term.

This is what I keep thinking. It’s hard for me to imagine US farmers (or any workers) sacrificing in the short term for an uncertain benefit in the long term. I guess we’ll find out in November and 2020.

Drs · 2018-08-14T20:31:23.767Z

Or they are paying higher prices for domestic supplies because the tariffs have closed the market. Steel makers have raised their prices something like 4 times this year.

You basically have a supply side system without any mechanism for opening the market up to prevent price gouging.