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

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.

CaughtInTheMiddle · 2018-08-14T20:37:08.326Z

Warren Buffett, or some other adult, could have probably gone to China and worked out a decent deal.

armycowboy · 2018-08-14T20:40:07.806Z

CaughtInTheMiddle:

Warren Buffett, or some other adult, could have probably gone to China and worked out a decent deal.

But trade wars are so easy to win.

johnrandolph · 2018-08-14T20:41:04.518Z

“When goods do not cross borders, soldiers do.” Bastiat

Tariffs are punishing to all involved.

conan · 2018-08-14T20:42:34.613Z

So…buy American. And if American product isn’t available buy friends of America.

armycowboy · 2018-08-14T21:27:02.475Z

conan:

So…buy American. And if American product isn’t available buy friends of America.

American products are becoming more expensive due to tariffs on many raw materials such as steel and aluminum.