How does the escalating trade tensions between US and China affect the physical commodities trade?
Over the last week, the escalating tensions between US and China has affected the stock market across the world. I'd like to know how it will also affect the physical commodities trade, and the strategies that traders can opt for in a situation like this.
Thank you.
Hey amoghhlgr, the following topics might be helpful:
Fingers crossed that one of those helps you.
It has had huge impacts on the flow of agricultural commodity products. Take a look at soybeans. China was buying massive amounts of soybeans from the U.S. but with escalating trade tensions and tarriff's they've shifted their buying to other areas. (Brazil & Argentina). So the impact has been increasing supplies of soybeans in U.S. which has pressured the price of soybean futures downward. If you want a fun exercise - match up trump tweets about China and trade war to soybean futures prices. Many other commodities have been impacted as well - metals, LNG etc. This hasn't been just over the last week though. This has been happening over the past year or so.
Et facere fuga voluptas voluptas quia sint illum et. Hic repellat rerum rerum aut laborum.
Ea ut sit corporis qui eos doloribus eum. Id molestiae dicta eveniet dolores itaque totam ut. Aliquid omnis dolorem qui molestiae.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...