AP/Andrew DeMillo
In this Tuesday, July 11, 2017, file photo, East Arkansas soybean farmer Reed Storey looks at his field in Marvell, Ark. Storey said half of his soybean crop has shown damage from dicamba, an herbicide that has drifted onto unprotected fields and spawned hundreds of complaints from farmers. Monsanto, a major agribusiness company asked a Pulaski County judge Friday, Nov. 17, 2017 to strike down the rule approved by the state Plant Board earlier this month that would prohibit the use of dicamba from April 16 through Oct. 31.
- Soybean prices dropped to an all-time low Friday.
- China is the world's largest soy importer.
- Watch soybeans trade in real time here.
Soybean prices dropped to a near-decade lows Friday as President Donald Trump showed no signs of backing down on threats to impose $200 billion worth of additional tariffs on China, the world's largest soy importer.
Soybeans prices fell to $8.26 a bushel for November delivery, the lowest level since late 2008. Prices have shed nearly 20% since March, when the Trump administration announced intentions to penalize China for what US officials found to be "unfair" trade practices.
The Trump administration enacted a 25% tariff on roughly $34 billion worth of Chinese goods last week. Beijing retaliated with in-kind tariffs on American products, including soybeans.
For John Heisdorffer, president of the American Soybean Association and farmer in Iowa, the tariffs come at a challenging time.
"Farmers are already dealing with low commodity prices and a down farm economy, and the price of soybeans has continued to drop since tariff rhetoric first began," Heisdorffer said.
"China is not a market that appeared overnight," he said, adding that farmers have worked with the Department of Agriculture for decades to develop foreign markets for soybeans.
The summer months are a popular time for American farmers to sell soybeans to China, according to economist Kevin McNew of Farmers Business Network. He said China has bought about 2.5 million metric tons of soybeans on forward contracts he expects will be cancelled.
Trump has threatened to impose tariffs on nearly all Chinese imports to the US. On Tuesday, he said a list of 10% tariffs on another $200 billion worth of Chinese goods is being prepared. An additional $200 billion could be targeted, the president had earlier warned, if Beijing retaliated on such a move. Officials vowed they would.
Additionally, the administration has another set with a trade value of $16 billion pending for public hearing. Those could be ready as soon as August.
Soybeans are down 14.7% over the past year.