Farm products should come down in price?

Investment Analysis Clubs Macro Economic Trends and Risks
1

Tell me if I am missing something but China’s tariffs on US farm products means China will buy less. To bring the crops to market means selling them for less in the US.

  • China: Initial 10% on China went into effect in early February, and China retaliated. Trump’s second move doubled the rate of tariffs on Chinese imports to 20% from March 4. China has responded with up to 15% duties on US farm goods such as chicken and pork, to start on Monday, March 10.
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Increased supply of US produced food in the US? Maybe. But also reduced supply of imported food, with higher prices, due to tariffs. Will California grapes cost more or less, if Mexican grapes are tariffed?

Steve

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More.

Next question.

–Peter

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Mexico may undercut its price to sell them before they rot. Sending the prices down further.

What specifically is consumed and sold is artificial much of the time. Then it passes by. It suits someone else what the prices are. Until it doesn’t. Then the question is how low can the price go?

Unemployment demand will be gone. So higher is not an option in aggregate.

5

You may be missing the fact that there are other buyers besides China. For example, if China bought up all of Brazil’s soybean production then other countries would have to buy elsewhere.

DB2

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In aggregate not as much demand in a global slowdown