Bean Ban Blowback: Bunge CEO "China Deliberately Not Buying US Products"

Authored by Mike Shedlock via MishTalk,

In its trade dispute with the US, started by Trump, China is deliberately not buying US products.

Bunge Ltd. CEO Soren Schroder told Bloomberg on Wednesday China has essentially stopped buying U.S. supplies amid the brewing trade war. Bunge is the world’s biggest oilseed processor.

“They’re buying beans in Canada, in Brazil, mostly Brazil, but very deliberately not buying anything from the U.S.”

It’s “very clear” that the trade tensions have already stopped China from buying U.S. supplies, Schroder said.

“How long that will last, who knows? But so long as there is this big cloud of uncertainty, that’s likely to continue.”

Bunge has still been able to meet Chinese demand by filling shipments with supplies from outside the U.S., Schroder said. The White Plains, New York-based company has a large presence in South America.

Soybean Price

The futures symbol for soybeans is "ZS". A chart shows the price of soybeans peaked in summer of 2012 near $1790.

Since bottoming in September of 2014, the price has mostly flatlined between $900 and $1,050.

It appears that the lack of Chinese buying US soybeans has neither hurt nor helped US farmers. But the dispute not done a damn thing for the deficit either.

At best, China's soybean retaliation has made the US the deficit with China worse while improving it by the same degree elsewhere.

Trump Playing With Fire

President Trump is playing with fire. He has started a trade war on multiple front simultaneously: China, the EU, NAFTA (Canada and Mexico).

Nothing good can possibly come from this. For discussion, please see Germany Seethes and Juncker Warns Trump About Tariffs: Can Trump Win?

Comments

Ahmeexnal CJgipper Thu, 05/03/2018 - 18:44 Permalink

China solved its soybean deficit problem easily.  It has a homegrown soybean ready to rollout on any contingence.  Current soybean is being directed to feed livestock porcine and bovine cattle.

Meanwhile the livestock human cattle are being fed with the domestically produced melamine soybean.

PROBLEM SOLVED!

 

In reply to by CJgipper

Sunnie Jim Dabooda Thu, 05/03/2018 - 20:34 Permalink

A large Supermarket in Australia (Coles) are trying to get out of an import contract for oranges grown in the US. They are not selling, even at a big discount or when local produce is out of season...

Consumer perception is that ALL US produce are either GMO grown or GMO contaminated. There is little trust among Australian consumers even if the description states that something is GMO free... I think there has been considerable damage done to "Produce of USA" as a brand.

In reply to by Dabooda

hooligan2009 Thu, 05/03/2018 - 15:37 Permalink

china is a one party, communist, state.

if you support free trade, why would you support "trading" with china?

china sets the level of its gdp and exports according to quotas/volumes, regardless of price.

the demand within the US, is set, via QE infinity and wally world, by the Fed.

as the Fed debased the dollar, China filled the void with its quota driven syatem.

6,000 chinese deputies in the chinese politburo, supported by the red army can't be wrong, hey?

Vlad the Inhaler Thu, 05/03/2018 - 15:37 Permalink

Taxpayer subsidies to US soybean farmers totaled $35.6 billion from 1995-2016.  China wouldn't be buying one stinking soybean from us if not for government meddling.

cwsuisse Thu, 05/03/2018 - 15:38 Permalink

Many a little makes a mickle. I would presume there are many people on this globe which have privately black-listed US-products for the behaviour of the US government. And it is possible. For most products there are substitutes from other countries. 

dognuts Thu, 05/03/2018 - 15:38 Permalink

I'm still waiting for someone to tell us what the alternative is or does the US keep sending $400B of wealth over to China every year. 

To Hell In A H… dognuts Thu, 05/03/2018 - 18:17 Permalink

Get real. The USSA is over $200 trillion in government, unfunded liabilities and personal debt.

The fact any nation actually accepts bogus American dollars at all, is the great perk on planet earth at this current time. 

$400 billion in Monopoly money when your currency to purchase goods? Count yourself lucky.

In reply to by dognuts

redd Thu, 05/03/2018 - 15:45 Permalink

good,
maybe the franken-beans grown in the usa taste like shit, bland nontasting crap, half grown weak looking, full of monsanto chemicals and have been genetically altered to attack certain types of people.

like the chicken for example.
nobody has been eating chicken this year have they??? nobody questioned here on zh why of all things they sent back the chicken. nobody thought that was odd? mmmMmmm

bluskyes Thu, 05/03/2018 - 16:02 Permalink

Basis is already covering the shipping from Amerika to Kanadian ports on the great lakes. Tariffs are all based on last port of departure - so as long as they are loaded on the boat in a Kanadian port - they are free from such things.

Warren, and his trains should be making good money this year.

edit.. Actually, CN Rail looks like nice at these prices

truthalwayswinsout Thu, 05/03/2018 - 16:12 Permalink

Trump is a dimwit. He knows that the only way to get their attention is a complete boycott.

Ban everything from China. Give US companies 6 months to build supply chains everywhere else. US companies got a massive tax break and what are the likes of Apple doing with it? They are doing a $100 billion buy back when they should be spending $15 billion to produce in the US.

Rex Andrus Thu, 05/03/2018 - 16:22 Permalink

How is this a surprise? The chicom dictatorship does this with everything. You can sell your American products in China, but first you have to hand over your IP and business methods for 3 years so China can knock off a Chinese copy. Chinese sheep know they'll lose social points if they buy the American one. How many spies in America? Not counting industrial spies and organized criminals just the Chinese have more political rabble rousers than there are FBI agents. That's just the Chinese.

Apparently SE Asia isn't enough. About as many illegal aliens as from the Americas. We have to change? Fuck you. You change, crooked fags.