America’s agricultural exports in the vaginal sanctions

Beijing announced on Tuesday that it will impose additional fees of 10% on US soybean shipments starting from March 10, according to the Chinese State Council. An additional customs duties of 10% will also be applied to fine corn, pork and cow meat, while the fees will increase by 15% on poultry imports, wheat, corn and cotton from the United States, according to a statement published by the Chinese Ministry of Finance on its website.

These measures include some of the most prominent American agricultural exports to China, and come at a sensitive time, as many American farmers are preparing to start the new agricultural season in the next few weeks. China is the largest importer of soybeans globally, as it is used to produce cooking oil and feed to feed its large herd of pigs.

The soybean futures, which are extremely important given the size of Chinese imports, decreased by 0.3%, after touched their lowest levels in nearly two months. Cotton futures in New York also fell to their lowest level in more than 4 years, while corn and wheat prices have not witnessed significant changes.
China is “ready to respond”

“China will be able to re -balance the supply and demand, for example, by increasing its imports of soybeans from South America or by release of reserve stocks.” Said Hanger Lee, Senghai JC Intelligence Co. He added that “China has been preparing for this scenario for a long time, and it is ready to confront it.”

Since the last trade war with the United States, the largest economy in Asia has sought to diversify the sources of its supply, which helped it reduce the impact of the new measures announced on Tuesday. (Economic)