China imposed a tariff on US soybeans, so now all the speculators are selling soybeans because they say america will lose that export market, well ok lets follow through on the logic.
Who is the next largest producer of soybeans? its Brazil so Brazil see that china has raised the price on on US soybeans so what is Brazil going to do? lets say prior to the tariffs america and Brazil were competing for the soybean market into china and they were selling around 8.50 a bushel well now china hit America with tariffs and they have to sell at 11.00 a bushel well Brazil will just raise their price to 10.50 a bushel their going to raise their soybean price why wouldn't they?
Im liking soybeans right now and it looks like the bottom is in.
