Market Insight: Biden’s China Tariffs?

President Joe Biden’s decision to raise tariffs on selected goods from China, impacting roughly $18 billion worth of imports, brings another variable to a grain market already stacked with challenges. 

Against a backdrop of concern how the action might affect grain exports to China, groups like the American Soybean Association (ASA) continue to urge a more careful approach.

″Even as the United States considers actions to protect our national security interests, we must also maintain and protect our economic and trade interests as well,″ ASA member Josh Gackle, who grows soybeans in North Dakota, told the U.S. House of Representatives’ Committee on Agriculture earlier this year. ″Soybean growers need predictability and certainty that we will retain market access in China.″

Soybeans are the country’s #1 agriculture export: In marketing year 2022/2023, the U.S. soybean export value totaled about $32.6 billion. China accounted for more than $18.8 billion, with the next destination trailing at around $3.3 billion. About one in every three rows of soybeans grown in the U.S. is destined for China.

Given all the volatility in the grain market, Peter Rousonelos, senior vice president of sales and business development for Meristem Crop Performance urges growers to focus on what they can control.

″There will always be ups and downs in the market,″ he says, ″but it’s important to remember that you every additional bushel you raise in an opportunity. You can’t sell it if you didn’t grow it in the first place.″ With planting wrapping up across the Corn Belt, Rousonelos says it’s time to focus on taking your crop across the yield goal line.

″We know from research and experience that at least 25 percent of the full potential of that crop can be captured mid-to-late season,″ says Rousonelos. ″High-yield growers are adding bushels by feeding those plants and protecting them from stress all season long.″ He says there are ways to efficiently improve yield with every pass through the field.

″When you can add micronutrients to maximize photosynthesis and help that plant deal with stress, whether it be herbicide stress or environmental stress,″ he says. ″The proline and phenolic acid in Harvestshield™ Complete can help your crop meet its genetic potential and give you your best chance of harvesting more bushels at a better ROI (return on investment).″