There’s a trade war going on between the U.S. and China– and now it’s affecting a top North Dakota crop – soybeans.
“Anything that goes into China there’s a 25% tariff on those products –on those beans,” said Berthold Farmers Elevator general manager Dan Mostad.
and with China being one of our biggest buyers— the demand for U.S. soybeans will decline.
“The impact on the economy for North Dakota and North Central North Dakota would mean that the growers are going to have less dollars in their pocket if prices stay the way they are right now,” said Mostad.
But the trade situation isn’t the only thing affecting soybean prices the size of the U.S. crop has been growing triggering standard supply-and-demand forces to pressure the price lower.
“The United States as a whole is producing so many more beans –supply I think is starting to reach the point where it’s reaching demand –we’re staring to have carry over now,” said farmer Jeff Krueger.
Nathalie Gomez Reporting:
“The USDA national ag statistic service projects that 6.6 million acres were planted here in North Dakota this past spring”.
“Prices have been relatively good –yields have been good and it looks like we got another big crop coming –all those factors –all of them worry all of us,”said Krueger.
But Krueger says the market can change come harvest time.
“At this point storage would be the thing to do and hope the markets comes back a little,” said Krueger.
Although Chinese tariffs threaten where our soybeans will go, Mostad says the supply china needs is something only the U.S. is capable of producing over Brazil who is also one of the top producers.
“China will have to source beans from somewhere else as well –so that’s why it’s such an unknown as to what’s going to happen,” said Mostad.
and so the agriculture community is left to wait until harvest time.