The soybean markets have been taking a big hit as a result of war of words taking place between China and the United States.
In response to trade threats being made by U.S President Donald Trump, China has announced a 25 per cent tariff on over 500 U.S. goods, including soybeans.
FarmLink Market Analyst Neil Townsend says the soybean price has dropped about $1.30 per bushel on the November contract since the dispute began.
He notes prices could drop even lower, if the situation worsens.
"A lot of times the fear of something is more dangerous than what really happens," said Townsend. "My own personal opinion is that they're going to talk and there is going to be some sort of resolution, it's just too important...If the tariffs are on there, you'd probably see a little bit lower [prices]."
Source : Steinbachonline