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

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.

dantes · 2018-08-14T21:27:35.675Z

People will buy the product with the highest quality to price ratio.

That’s how capitalism works. You’re less of a capitalist and more of a nationalist.