Trump Pegs Soy Downturn on ‘Bad’ Trade When Weather’s to Blame

Jul 20, 2018

Prices have slumped since hitting a record in 2012 as weather turned favorable, boosting production and global stockpiles

By Megan Durisin

July 20, 2018, 10:34 AM CDT

President Donald Trump on Friday blamed a plunge in U.S. soybean prices on “bad (terrible) trade deals.” Mother Nature is really the culprit.

Donald J. Trump ✔@realDonaldTrump

Farmers have been on a downward trend for 15 years. The price of soybeans has fallen 50% since 5 years before the Election. A big reason is bad (terrible) Trade Deals with other countries. They put on massive Tariffs and Barriers. Canada charges 275% on Dairy. Farmers will WIN!

8:04 AM - Jul 20, 2018

75.5K

35.3K people are talking about this

Soybean futures soared to all-time highs in 2012 -- five years before Trump was elected -- as a drought ravaged Midwest farms and crimped production. In the seasons since then, farmers in U.S. and Brazil, the top exporters, have reaped several back-to-back bumper crops and prices have slumped.

Chicago Board of Trade

“Weather has been abnormally good and we’ve seen above-trend yields in the U.S., and that’s been a much bigger factor in the decline,” said Bill Lapp, president of Advanced Economic Solutions in Omaha, Nebraska. “We’re highly dependent on trade. For soybeans, it’s absolutely critical that we participate in those markets.”

Trump’s Not Wrong on Soy Prices, But It’s Not the Whole Picture

U.S. soybean shipments have soared in recent years amid rising demand from China, which has now put tariffs on American imports in retaliation for similar taxes imposed by the White House. Trump said he’s “ready to go” with $500 billion more in new tariffs on Chinese imports, according to a CNBC interview aired Friday.

USDA

The president’s comments on soybeans come nine days after similar tweets during his trip to Brussels for the North Atlantic Treaty Organization summit.

Donald J. Trump ✔@realDonaldTrump

I am in Brussels, but always thinking about our farmers. Soy beans fell 50% from 2012 to my election. Farmers have done poorly for 15 years. Other countries’ trade barriers and tariffs have been destroying their businesses. I will open...

7:40 AM - Jul 11, 2018

81.3K

27.2K people are talking about this

Donald J. Trump ✔@realDonaldTrump

Replying to @realDonaldTrump

...things up, better than ever before, but it can’t go too quickly. I am fighting for a level playing field for our farmers, and will win!

7:40 AM - Jul 11, 2018

70.8K

22.6K people are talking about this

Soybean futures in Chicago reached a record of $17.89 a bushel in 2012. On Friday they rose as much as 0.8 percent to $8.6875.

— With assistance by Justina Vasquez