On Wednesday, President Trump signed legislation in support of Hong Kong’s pro-democracy protestors, a move that is angering mainland China. The Chinese government is accusing the United States of meddling in its domestic affairs.
While the legislation doesn’t make any firm commitments, there is concern that the United States could levy sanctions against the Chinese over their treatment of Hong Kong, a former British colony that is now under Chinese control.
For farmers, this latest diplomatic dust up is a concern, as maneuvers around the Hong Kong question could interrupt the trade deal that Presidents Trump and Xi have been working toward.
As a result, corn, soybean, and hog prices all fell to new low levels on Wednesday on fears that exports to China will continue to be constrained by the ongoing trade war.
Markets stabilized Friday after taking a break for Thanksgiving, with March corn and January soybean futures trading for $3.82 and $8.80 per bushel, respectively, while February lean hogs fetched 68.5 cents per pound.