Today, Mexico will carry out the second round of tariffs, targeting $2.5 billion in agriculture products. The U.S. pork industry will be impacted by the retaliatory tariffs. And Friday, the U.S. will likely impose a 25 percent duty on Chinese exports. China is expected to retaliate. Rabo Agri Finance Senior Analyst for Food and Agribusiness Research, Stephen Nicholson, says if the U.S. is still having trade issues in October, this dispute becomes more detrimental to futures and basis levels in the U.S. Nicholson explains U.S. beans could still find their way to China. Farmers should monitor this closely. Nicholson says trade uncertainty increases market volatility. “It does create opportunities if you are sellers or buyers of grains and oilseeds and then, that’s something to think about as well going forward.”
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