Tariff Retaliation Weakened the U.S. Soybean Basis

China’s retaliatory tariff on soybeans depressed cash prices; increased demand for soybean storage, likely weakening the effectiveness of futures-based hedging strategies; and widened U.S. soybean basis, especially in the Upper Midwest, by effectively shutting off Pacific ports as a major export channel. Alternative foreign markets did not make up the difference.