Tariff Retaliation Weakened the U.S. Soybean Basis

Michael Adjemian, Shawn Arita, Vince Breneman, Rob Johansson and Ryan Williams

Choices: The Magazine of Food, Farm, and Resource Issues, 2019, vol. 34, issue 4

Abstract: China’s retaliatory tariff on soybeans depressed cash prices; increased demand for soybean storage, likely weakening the effectiveness of futures-based hedging strategies; and widened U.S. soybean basis, especially in the Upper Midwest, by effectively shutting off Pacific ports as a major export channel. Alternative foreign markets did not make up the difference.

Keywords: Crop Production/Industries; International Relations/Trade (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaeach:301010

DOI: 10.22004/ag.econ.301010

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