Global grain marketers such as Cargill and rivals Archer Daniels Midland Co and Bunge Ltd have seized upon trade tensions between the United States and several of its top export markets, including China, to turn around struggling trading units following one of the toughest years ever for the industry.
However, growing trade disputes are disrupting agricultural supply chains worldwide, with ships carrying U.S. sorghum exports turning around after China raised prices for buyers.
In the short term, U.S. farmers will be hurt the most by declining prices linked to China’s tariffs on soybeans, Boughner Vorwerk said. The crop is the top U.S. agricultural export to China, worth $12 billion last year.
“History has shown that the use of tariffs is unsuccessful in achieving lasting solutions – the current challenges between the United States and China are no different,” she said.