During the skirmish, which still includes the fate of our aircraft, China demanded an apology from the U.S. for the incident. I'll give them an apology. I'm sorry I ever voted for normal trade relations with them. Washington insiders say there was talk of a resolution to revoke last year's PNTR vote. U.S. soybean farmers have a lot at stake in the trading relationship with China.
China is the largest buyer of U.S. soybeans.
During the diplomatic debate that culminated with the release of U.S. military personnel earlier this week, the U.S. had 24 million bushels of unshipped soybeans on the books with China. If matters of state erode agricultural commerce with China, U.S. soybean farmers will be faced with an increased surplus of soybeans and much lower prices. Exports are important to U.S. farm income. The USDA says a fourth of net farm income is generated from export sales. Lost agriculture sales to China can lead to lower U.S. commodity prices.