July Supply Forecast Has Tariff Info

July is the USDA's first world agricultural supply and demand estimate since China placed tariffs on some American Ag exports, and the second since Mexico issued similar tariffs on U.S. pork products.  And those tariffs were accounted for in the latest WASDE.  USDA Chief Economist Rob Johanson said for soy beans in the new marketing year,

"Overall, exports for whole beans is down, assumed by about 250-million bushels."

Due to not only the Chinese tariffs on soy beans, but also from increased competition expected from Brazil and Argentina.  That contributed to a 75-cent year-over-year reduction in the season ending average price.

Meanwhile, a lowering of pork prices by a $1.50 due to increased production and slaughter forecasts means that although China and Mexico have tariffs in place.  The lower price is helping to increase demand for pork across global consumers, reflected in strong U.S. pork export business in markets like South Korea and Australia.​

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