Cargill CEO Sees Risk to U.S. Farmers as China Shuns Soybeans

[mahatmakanejeeves]

“Maybe if it were fixed quickly, we might go back to the way it was, but long term I’m concerned it has a detrimental effect on the U.S. agricultural economy.”

Link to tweet

Markets

Cargill CEO Sees Risk to U.S. Farmers as China Shuns Soybeans

By Mario Parker, Isis Almeida, and Alix Steel
September 25, 2018, 9:08 AM EDT Updated on September 25, 2018, 11:03 AM EDT

> CEO MacLennan says Xi told executives China won’t back down
> China expected to run down soybean stocks, seek alternatives

President Donald Trump’s trade war with China may have a lasting impact on American agriculture if it drags on, with the Asian nation already halting U.S. soybean purchases, according to the head of Cargill Inc.

A long-term dispute could shift perception of the U.S. as a reliable trade partner and prompt China, the world’s largest importer of soybeans and the biggest buyer from the U.S, to turn to other sources of protein to feed its chickens, pork and other livestock, Chief Executive Officer David MacLennan said. That could squeeze U.S. growers out of the industry. ... “Maybe if it were fixed quickly, we might go back to the way it was, but long term I’m concerned it has a detrimental effect on the U.S. agricultural economy,” he said in an interview with Bloomberg Television on Tuesday.

Soybean prices are near the lowest levels in a decade as China slapped tariffs on U.S. supplies in retaliation to U.S. taxes on Chinese goods. On top of that, there have been good growing conditions in North America and Brazil.

China has committed not to buy American soybeans because of the trade war, but also because of pride, MacLennan said. The head of the largest privately-held U.S. company was among a group of leaders that met with Xi Jinping before the trade war deepened over the summer and the Chinese President said his country wouldn’t back down, he said.
....

[sprinkleeninow]

1. Hey Cargill! No s**t sherlock! Thank your orange baboon.

Sorry, true worldwide baboons.

[Wellstone ruled]

3. And to add this to their crying.

These markets will not come back for many a year. Once the Infrastructure of shipping is in place,forget about it. The main reason we captured the China Market was Subsidies paid to the Shippers as well as China for buying our Soybeans,and this goes for Corn and Hard Wheat. Then came Pork and Chicken at give away pricing.


Our Farm Economy has been based on Market Subsidies and Incentives with the Non Farm Portion of our Country picking up the tab just to keep a segment from total collapse.

[democratisphere]

2. One drumpf carnage after another drumpf carnage.

This is the last thing farmers need.

[sprinkleeninow]

4. And then trickle down to us the consumers.

I'm hating this.