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Oh boy, what about the soy?

On April 4th, the Chinese government announced tariffs on 106 products from the US, as a response to tariffs the US government issued on Chinese products the day before. Soybeans are a part of these tariffs, with a levy of 25% slapped on it. The US soybean trade to China is supposedly valued at $12 billion, and thus very important for farmers in the US midlands. As shown in the graph, made by the Washington Post, the soybean prices took an immediate hit and plummeted by more than five percent. One of the interesting effects of this could be that farmers, who usually plant their soy around this point in time, turn away from soy and plant corn instead.

 

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