Beam Farms will harvest its soybeans this fall, but then decide what to do next year.
Soybeans are a cash crop for Arkansas farmers.
At Beam Farms, soybeans are the main crop, noteworthy as China imported one-third of its soybeans from the U.S.
It also comes as demand for soymeal has already been hit by losses in the pig farming sector, the report said. Chinese buyers have not been buying American soybeans at the same rate this year, and producers are leery to ship them for fear the shipment may not be accepted when it reaches China, University of Arkansas agriculture economist Bob Stark told Talk Business & Politics earlier this week.
This is leaving several farmers across the US and here in Arkansas in a panic, but hopeful.
Farmers have been able to manage low prices because of unusually high soybean yields, but projections suggest those are returning to average.
China imports about 100 million metric tons of soybeans each year, and the USA contributes about 35% of that total, according to USDA.
Chocolates for Kids, Bidar Villagers Killed Hyderabadi
The group made a decision to stop for some refreshments at a shop near Balkut Tanda, where they came across some school children. At least three people have been killed and more than a dozen assaulted over such rumours this year, according to media reports .
China's retaliatory tariffs on USA soybeans, threatened for weeks and enacted Friday, have driven down prices and triggered a wave of bargain shopping by importers in other countries stocking up on cheap US supplies, according to a Reuters analysis of government data.
"The soybean prices have dropped over 20 percent since the talk of these tariffs began", Beam says. The soybean stockpile would surge to 580 million bushels by the time the 2019 crop is ready for harvest, the largest USA "carryover" in 74 years of USDA records. Prices for soybeans for delivery in November held steady on Thursday.
Trump has threatened to impose tariffs on almost all Chinese imports to the US.
A report from the USDA Thursday showed as of the first week of July, soybean export commitments were already down eight million tons compared to a year ago.
They are instead loading up on Brazilian soya beans, which now sell at a premium of up to $1.50 a bushel as United States soya bean futures have fallen 17 per cent over six weeks to about $8.50, their lowest level in almost a decade.
But with farmer margins already razor-thin due to low soya bean prices, Chinese demand will be sorely missed this fall, when prices typically enter a seasonal slump, Sutter said. The price advantage for USA soybeans "is expected to continue into the foreseeable future as both strong demand by China and the duties imposed on US imports help maintain price premiums for South American soybeans well into 2019", said USDA analysts. The U.S. crop was projected at 4.310 billion bushels, the second largest ever.