Over the weekend, word came that there was a framework in place to prevent the United States and China from escalating disputes into a full-blown trade war. Soybeans were on the Chinese tariff list. What will it mean for exports to China?
The agreement between the world’s top two economies, meant a halting of proposed tariffs. Many of the tariffs involved U.S. agricultural products. Iowa Soybean Association CEO Kirk Leeds says like many commodity groups, ISA is encouraged by this news.
But the encouragement is tempered by a sense of uncertainty. Leeds says he is skeptical in the high estimates in export growth because of the agreement.
Leeds says that at the end of the day it is quality, price and availability that will drive Chinese purchases of U.S. Soybeans. Leeds says those are three areas where Iowa producers can be confident in their product.