|Markets Insider chart Aug. 24; click on it for a larger version|
That was a blow for the U.S. pork industry, which "has been anticipating even more demand from China because of African swine fever devastating China's hog herd," Clayton notes. The National Pork Producers Council said, "China, the largest pork-consuming nation in the world, is seeking reliable sources of pork as it deals with African swine fever."
"This escalation will affect us not because of the increasing tariff on our sales, which have been at a virtual standstill for months, but through time," said Davie Stephens, president of the American Soybean Association. "The longevity of this situation means worsening circumstances for soy growers who still have unsold product from this past season and new crops in the ground this season, with prospects narrowing even more now for sales with China, a market soy growers have valued, nurtured, and respected for many years."
Clayton notes, "The tariffs hit U.S. agriculture as farmer frustrations have risen over trade, the Trump administration's handling of refinery waivers for biofuels, and a challenging crop year. Future prices for the November soybean and December corn contracts peaked in mid to late June and have steadily declined since then."