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On agricultural markets, soybeans in the red after Trump's election and the agreement between the United States and China sets the markets ablaze

Published Nov 6, 2024

Tridge summary

The article examines the expected fluctuations in the agricultural commodities market following a Republican win, with a focus on Donald Trump's presidency's impact on grain markets. Analysts worry about a potential slowdown in American soybean exports due to previous trade tensions with China, although current availability and competitive pricing might maintain exports until the presidential inauguration. The article also explores the possible effects of Trump's policies on biofuels and the agricultural sector, including tax cuts, increased deficits, and their influence on bond rates and the dollar. Additionally, it mentions China's shift in corn imports from the US to Brazil and the potential reallocation of wheat imports among other suppliers.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

American analysts had anticipated a "resurgence of volatility" on the agricultural commodities market with a Republican victory, fueled by the uncertainty linked to the change of president. But this volatility is partly tempered by the clarity of Donald Trump's victory: "At least on this level, there will be no issue", notes Edward de Saint-Denis, of the brokerage firm Plantureux & Associés. But for everything else, underlines Sébastien Poncelet, analyst at Argus Media France, "we have many more uncertainties and questions than answers". The first notable element on the grain markets is the significant drop in the price of soybeans in pre-opening on the Chicago Stock Exchange. This concern about oilseeds on the American market is linked to the memory of the trade war between China and the United States in 2018/19: "in retaliation for the increase in American customs duties on Chinese imports (on solar panels, steel, aluminum, etc.), the Chinese were almost no longer buying ...
Source: TerreNet
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