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Market drop nullifying Chinese tariffs on soybeans

An analyst says the free-fall in futures prices is nullifying the 25 percent tariff China has placed on U.S. soybeans.

U.S. Commodities president Don Roose tells Brownfield even with duties in place, the cost of American beans compared to Chinese domestic supplies is within 15 cents.

“With the price of soybeans going down so dramatically, we’ve almost neutralized that 25 percent tariff.  And if that’s the case, what you’re going to see is Brazil, Argentina, and other re-sellers buy soybeans from the U.S. and then sell them into China.”

He says Beijing has also removed tariffs on soybeans purchased from the U.S. that go into China’s reserve supplies.