Pelosi’s Taiwan visit bearish for soybeans


Pelosi’s Taiwan visit bearish for soybeans

Speaker Pelosi’s visit to Taiwan is the latest geopolitical issue to influence commodity prices.

CHS Hedging director of producer brokerage Kent Beadle says it appears China is retaliating to Pelosi’s visit by canceling shipments of U.S. soybeans.

“We heard rumors today that there were a couple of cargoes that ended up trading out of Brazil that could’ve traded out of the U.S. So that was the Chinese just showing their displeasure with the activity that occurred.”

He tells Brownfield soybean futures responded negatively, but it’s unlikely the retaliation will continue.

“We don’t think there’s enough soybeans ultimately in Brazil and in Argentina for (China) to turn their back on the U.S. They’ve already bought a sizable quantity of new crop U.S. soybeans, and I suspect they’re going to continue to buy more in the future.”

Brownfield interviewed Beadle Wednesday at Minnesota Farmfest in southwest Minnesota.