Agrimony is one of my favorite sites to go to for current information on the ag markets, and for good reason. They avoid hype, clickbait headlines and pretty much focus on what is actually going on. And one thing that’s going on right now is that people in the ag business are very, very nervous. You can take a look at the current situation here: Source: Agrimoney.com | ags dip, as funds succumb to pre-election nerves
The article only mentions Trump once, but he is really the elephant in the room, and he makes a whole lot of people in the ag industry very nervous indeed.
No one has been able to really pin him down on anything, really, but one thing is certain, is he has an extremely antagonistic attitude towards China. His campaign speeches and his off-the-cuff comments have portrayed China as some kind of economic super villain that has decimated the US economy. While most people understand that most of his comments are largely campaign rhetoric and could very well change 180 degrees the next time he opens his mouth, it makes a hell of a lot of people in the ag business very nervous indeed, and for good reason.
China buys massive amounts of US agricultural products, and making vague threats and uttering dire warnings about what he’d do to interfere with China’s business interests, is a very dangerous thing to do when China could easily put barriers in place to restrict the importation of US farm products.
Has China damaged our economy? Probably. But it was done with the full cooperation of the US companies who gleefully started snapping up Chinese products instead of making them here because it was more profitable. And with the full cooperation of the US government which did little or nothing to try to stop it.
But that point is moot right now. It’s already happened. Pointing fingers and uttering vague threats isn’t going to do anyone much good at this point in time. And it could make things far worse. If Trump gets elected and continues to try to use China as a scapegoat for our own largely self created economic problems, the end result could be very nasty indeed.
Like it or not, we are in a world wide economy. US ag exports are a relatively bright spot in what is an otherwise overall mediocre or even worrisome economy. If Trump becomes elected and continues his blustering, threatening attitude, China could simply take its business elsewhere.