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Tue Aug 13, 2019, 01:39 PM

U.S. Farmers Stung by Tariffs Now Face a $3.5 Billion Corn Loss

•Latest USDA report sparks biggest corn futures rout since 2013
•Best opportunity to sell corn may now be behind, CoBank says

By Isis Almeida , Mike Dorning , and Mario Parker
August 13, 2019, 11:34 AM EDT

American farmers already stung by President Donald Trump’s trade wars now face billions of dollars in potential losses as controversial data from the U.S. government snuffs out a rally in corn.

The Agriculture Department on Monday said farmers planted a bigger corn area than analysts estimated and pegged crop yields that also exceeded expectations, sparking the biggest rout in futures since 2013. That was a blow to growers who were holding back supplies, hoping a rally that started in May due to delayed sowing would extend through the fall.

The decline represents a potential loss of almost $3.5 billion for U.S. farmers, according to the American Farm Bureau, and is another setback for them after prices fell following the USDA’s previous acreage report, which was widely criticized for containing outdated data.

The latest data is compounding the pain from the trade war between Washington and Beijing, which has significantly reduced purchases from the world’s largest soybean buyer. Policy uncertainty has also hit the farm economy as a new U.S. deal with Mexico and Canada is yet to be passed. What’s more, the government is allowing 31 oil refineries to go without blending ethanol into fossil fuels, hurting demand for corn.
“This is a huge disappointment for farmers that have already been struggling with a lot of uncertainty with this corn crop, trade wars and what have you,” said Tanner Ehmke, manager of the research team at CoBank, a $138 billion lender to the agriculture industry. “A lot of people were banking on the opportunity to sell at much higher prices. This report now really brings that into question.”

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https://www.bloomberg.com/news/articles/2019-08-13/u-s-farmers-stung-by-tariffs-now-face-a-3-5-billion-corn-loss?srnd=premium

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Reply U.S. Farmers Stung by Tariffs Now Face a $3.5 Billion Corn Loss (Original post)
RCW2014 Aug 13 OP
uncledad Aug 13 #1

Response to RCW2014 (Original post)

Tue Aug 13, 2019, 04:48 PM

1. So much winning...

Maybe China will come back to the table and maybe the WH will .... what am I saying?

China is claiming the WH is responsible for the HK riots. Once the PLA police arrive, it's all blood and guts.

Leading to China's leadership facing sanctions.

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