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.
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