After the Chinese Ministry of Finance announced that the duties would be introduced against US import, the price of soybeans and other agricultural products began to rapidly decrease. It should be noted that the total value of import is estimated at 75 billion dollars.
Representatives from official Beijing have emphasized several times that the measures to increase tariffs were a necessary response to the American actions. So, since September 1, they introduce a 5% tariff for soybeans and a 10% tariff for pork produced in the USA. Besides, new duties will be imposed on oil, corn and cotton.
On CBOT, soybean futures have dropped 1.3%. Contracts for other goods that will be imported at new tariffs also began to lose in value.
China has already imposed an increased duty on American soybeans. After that, the number of purchases of this product fell sharply.
The Bloomberg Commodity Price Index fell nearly 1% during Friday trading.
Gold seems to be doing pretty well. The precious metal continues to grow, having already reached maximum values over the past 6 years. The increased demand for protective assets caused the price rise. The gold exchange rate has risen almost 2% – to a value of $ 1,535. Since the beginning of the year, the price of gold has grown 20%.
The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group