Aug 15, 2018 - Economy & Business
Trump's trade war with China fuels drop in farm prices
- Zachary Basu, author of Axios Sneak Peek
Workers transferring sacks of animal feed made from soybeans imported from Brazil at a port in Nantong, China. Photo: AFP via Getty Images
Prices for U.S. agricultural exports plummeted 5.3% in July, driven primarily by a 14.1% decline in soybean prices, according to the Bureau of Labor Statistics.
Why it matters: In 2016, soybeans accounted for 12% of U.S. exports to China, prompting American farmers to ramp up their production. China is now attempting to curb its consumption of soybeans as part of its escalating trade war against the U.S., helping drive the largest single-month drop in farm export prices since October 2011.