October 4th, 2018

The Big Picture: Soybean trade wars

Bean counting

Since China implemented a 25% import tariff on US soybeans in July, we have seen major changes in the soybean shipping market. As the US harvests a record crop, its exports to China, the world’s second largest soybean trade last year, have ground to a halt. Meanwhile China has consolidated its dominance over Brazilian exports, displacing other buyers.

As a result, this season we are seeing new and unusual trades emerge as US soybeans fall in price and alternative export markets open up. This is likely to have a negative effect on demand in the short run, but in the long run, the changes have the potential to generate increased demand for bulkers.

Please login to view this content

Contact Braemar ACM Research at [email protected]