Home Corn And Soybean Exports Brazil And Argentina Plan To Take A Huge Bite Out Of U.S....

Brazil And Argentina Plan To Take A Huge Bite Out Of U.S. Corn And Soybean Exports In 2019

195
0
SHARE

President Trump’s lawyers know 2019 will be an excellent year for their bank accounts. The president legal bills keep climbing thanks to his legal issues. According to ABC News, the Trump campaign spent $8 million to defend the president during his first two years in office.


Rudy Giuliani doesn’t invoice Trump for his questionable legal advice. The former mayor of New York City makes millions on the speaking circuit. And his security law firm represents clients in Ukraine and other countries.


Rudy always wanted to be president. Now that he is the president’s legal mouthpiece he commands big bucks when he shows up to speak. Rudy’s critics say he should register as an agent for foreign governments due to his relationship with prominent foreign individuals and companies that want to do business in the United States. Some of those characters’ use money to gain favors from U.S. political figures, according to a Bloomberg article.


Financial investors around the world know Trump likes to use sanctions and tariffs to get what he wants from other countries. The steel and aluminum tariffs created financial blowback from Canada, China, and the European Union as well as other countries. The EU plans to put tariffs on American-made products by the end of 2019. Europe knows American consumers will pay the price. EU leaders hope the pressure of those tariffs will help beat Trump in 2020.


But the tariffs that may create the biggest challenge for Trump in 2020 are the agricultural tariffs. Trump’s tariffs on soybeans and corn cost farmers millions in lost revenue in 2018. And their losses in 2019 may top the losses they experienced last year. Mr. Trump claims his tariffs will eventually produce more business for farmers, but that won’t happen now that Brazil and Argentina are in the soybean and corn export game in a big way.


Soybean and corn production in Argentina and Brazil is higher than expected this year, according to the US Department of Agriculture’s World Agricultural Supply and Demand Estimates. The Department of Agriculture also predicts U.S. corn and soybean farmers will see a drop in production in 2019 thanks to the floods and Trump’s tariffs. Plus, South American prices will hurt their export business in 2019.


Corn and soybean buyers in Japan, China, Taiwan, Korea, and Egypt like the lower prices in South American. Once South America replaces the U.S. as the major source for corn and soybeans in those countries it will hard to get that business back without dropping prices, according to U.S. farmers.

LEAVE A REPLY