The state’s number one crop is in the cross hairs of new tariffs announced by the Chinese.
Soybeans could soon be more expensive to export to China and markets are reacting already.
“Typically the markets will panic to news like this,” said Kayla Burkhart, CHS SunPrairie Grain Division Manager.
And the markets did – especially for soybeans. The crop dropped forty-three cents leaving the price at 8.75.
“It’s our biggest crop so to see this happen as we’re just becoming a massive soybean producer is not perfect timing,” said Burkhart.
“If it keeps dropping it could be a problem,” said Eric Moberg, Farmer.
Eric Moberg is a farmer and one of the crops he grows is soybeans. When he saw the news break today – he anticipated a drop in price but is optimistic that there is no need to panic quite yet.
“China is the world’s largest buyer of soybeans and they need all that protein and that demand just continues to grow,” said Moberg.
But, the US isn’t the only place that sends soybeans to China. South American countries are also big exporters of the crop.
“They need our commodities because South America had a short crop this year,” said Moberg.
“We’re going to start to worry if it starts to affect the business that can be done on the pacific northwest,” said Burkhart.
Kayla Burkhart anticipates that the worst of it will be short term and it will affect our old crop already in bins more than this year’s crop.
“For new crop, hopefully we resolve these trade issues by then and prices have the chance to recover,” said Burkhart.
But for now, it’s early to tell just how much of an impact it could have on our local farmers.
“We’ll just have to wait and see. We still have a little bit of time yet before we plant,” said Moberg.
“The market just needs to figure out how it’s going to react to this,” said Burkhart.
“I think it will pan out,” said Moberg.
Farmers like Eric Moberg hope the trade spat between China and the US doesn’t cut into the profitability of the state’s new number one crop.
Corn is another crop that could be affected.
Burkhart says that she is not as concerned because a lot of North Dakota corn is sent to places other than China.
Even so, traders today sent corn lower by 8%.