Miller Magazine Issue: 113 May 2019

Trump effect on grain market The latest round of trade talks between Washington and Beijing en- ded without a trade agreement. Before the negotiation, U.S. President Trump escalated the trade war with China, raising tariffs on $200 billion worth of Chinese goods. The decision to impose 25 percent tariffs on nearly one-third of all Chinese products is the largest trade act that Trump has taken so far. Soybean and grain futures fell as the talks falte- red with China, the world’s top oilseed buyer. The Bloomberg Grains Subindex Total Return tumbled to the lowest since 1977. The prospect of an end to the crippling tariffs that Beijing imposed on U.S. soy, corn and wheat exports was one of the few positi- ves for American agriculture markets. July soybean futures capped a seventh straight loss as the contract slumped to a record. Soy has been one of the hardest hit commodities by the trade war as China, the world’s top consumer. Traditionally, China has been the largest importer of U.S. soybeans, with $3.1 billion worth bought in 2018. Other agricultural products exported to China in high amounts include cotton ($924 million), hides & skins ($607 million), pork & pork products ($571 million), and coarse grains ($530 million). No one is certain about what is next in the trade war. Beijing has a host of options to retaliate against the latest hike in U.S. tariffs on Chi- nese imports. If the conflict rages on, the grain market could be hit the hardest by new rounds of tariffs. The Trump administration has done projections on the effect of the additional tariffs on the economy and considers that the negative effects will be minimum and pale in com- parison to those facing China, an administration official told New York Times. I am not sure about that. editor Namık Kemal PARLAK Parantez Media Parantez Media company/miller-magazine millermagazine MillerMagazine Parantez Publishing and Congress Ltd. Gökevler Mah. 2312 Sok. No:16/37 Ginza Corner Plaza, Esenyurt / İstanbul - TURKEY T. +90 212 347 31 64 F. +90 212 212 02 04 www.millermagazine.com info@millermagazine.com On Behalf of Parantez Publishing and Congress Ltd., Owner Zübeyde Kavraz Managing Director Muhammed Akatay Editor-in-Chief Namık Kemal Parlak Editors Mustafa Yağmurlu Cemalettin Kanaş Sales and Marketing Özlem Buyruk Inji Aydash Burcu Çetin Art Director and Visual Design Alparslan Murat Aysu Corporate Communication Executive Derya Gülsoy Yıldız Legal Advisor Ayşe Özlem Bulgu ayseozlembulgu@istanbulbarosu.org.tr Consultancy Board Derviş Toprak Ergin Ünver Mehmet Şerif Gültay Rıfat Tanık Zafer Ergezen Referee and Scientific Advisory Board Prof.Dr. Mustafa Bayram Prof. Gustavo Sosa Prof.Dr. Hazım Özkaya Asst. Prof. M. Kürşat Demir Asst. Prof. Halef Dizlek Asst. Prof. Harun Dıraman Asst. Prof. Mustafa Erbaş Publication Type - Periodic (Monthly) Printing Maviay Ofset Etiket Matbaa San. ve Tic. Ltd. Şti. Litrosyolu 2. Matb. Sit. No: 1BF2 Topkapı / İST. Tel: 0212 613 47 65 All copyrights belong to Parantez Publishing. © May not be used without permission. Responsibility of the ads belongs to the advertisers. ISSN 1309-6125 Copyright Page