Blockade Of The Strait of Hormuz Impacts

On the surface, President Trump’s blockade of the Strait of Hormuz deprives Iran of badly needed oil reserves, millions of dollars in insurance premiums they were collecting to assure safe passage of vessels. But depending on how long the blockade actually lasts, it increases the chance of the Beijing summit already postponed once likely being postponed again.

China imports more than 1.5 million barrels of crude oil per day from Iran. Elsewhere, Beijing’s summit, if it’s canceled, would be a wave of selling in the soybean complex. Bottom Line analysts say the longer fuel prices stay elevated, the chance of increased soybean acres increases as well at the expense of corn.

Audio Reporting by Mark Oppold for Southeast AgNet.