How much does imported American soybean cost per jin in US dollars?

Currently the internationally accepted settlement currency is the US dollar, so in the process of importing soybeans from the United States the settlement currency used is likewise the US dollar. As for the current (June 29) price of soybeans arriving at port, it is 3320-3340 yuan per ton, which is 1.61-162 yuan per jin. Calculated according to the current USD to RMB exchange rate, that is 0.244 US dollars per jin.

However, everyone should not think that this is the market price of American soybeans, because imported soybeans include freight, value-added tax, tariffs, port miscellaneous fees and other odds and ends. In other words, the price of soybeans in the United States itself is much lower than the price of imported soybeans.

According to a June report from the United States Department of Agriculture, the price of soybeans in the United States itself is 8.75-11.25 US dollars per bushel (equivalent to 321.50-413.36 US dollars per ton). Calculated according to the current exchange rate, that converts to 2300 yuan per ton, which is 1.15 yuan per jin.

For reference, our country's current soybean price is 1.76 yuan per jin, which is 1.5 times the price of American soybeans. As for American soybeans, they can truly be called the cheapest soybeans in the world today, with a very low price.

In December 2017, Chen Xiwen, director of the Department of Agricultural Economics of the Ministry of Agriculture, said it was necessary to push forward the steps for our country's grain prices to align with international standards. It should be said that as far as our country's current grain prices are concerned, there is still quite a large gap compared with international grain prices. If our country's soybean price were lowered to the same level as that of the United States, ordinary people would probably really suffer losses.

Due to this year's China-US trade issue, an announcement released in mid-June showed that a 25% import tariff would be imposed on soybeans from the United States in July. Judging from the current market situation, by then the soybean price on the US side will reach 3800 yuan per ton. It can be said that this price has already exceeded our country's domestic soybean price. Undoubtedly, this is something that makes our country's soybean farmers excited.

However, in today's economic globalization, we should also recognize that the behavior of imposing tariffs on American soybeans will not continue for long. If the market is truly opened up in the future, our country's domestic soybeans will have no competitive advantage at all. This is what deserves our deep reflection.

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