Speculation that China’s economy is faltering has some U.S. economists worried how their downturn might affect products here in the U.S.
When the Chinese economy is good, they purchase more products from the U.S. When it’s not as healthy, their desire for U.S. goods, including agricultural products, is lower.
Darren Hudson, an agricultural economist at Texas Tech, tells the Lubbock Avalanche-Journal that people shouldn’t panic. The U.S. stock market was down over the weekend, but began to slowly rise Monday.
There’s also concern regarding China’s stockpile of U.S. cotton. The release of millions of bales of stored cotton could cause a downturn in cotton prices.
A Chinese economic downturn could also affect the country’s demand for U.S. grown sorghum, which has been good.
China devalued its currency earlier this month to make its goods more competitive on a global market. That move prompted speculation the economy there isn’t doing well.