Tuesday, August 7, 2018


Due to their volume requirements China cannot secure their supply chain for soybeans without purchasing U.S. soybean crops.   

China can purchase soybeans from Brazil and Argentina; however, that only leads to Argentina increasing it’s soybean purchases from the U.S.  Amplifying this issue are current lower yields from South America in their soybean crops.

(Reuters) – China may have to start buying U.S. soybeans again in coming weeks despite the trade war between the two countries as other regions cannot supply enough soybeans to meet China’s needs, Hamburg-based oilseeds analysts Oil World said on Tuesday.
In July, China imposed import tariffs on a list of U.S. goods, including soybeans, as part of the trade dispute with the United States. China is the world’s largest soybean importer and has been seeking alternative supplies, especially in South America, where supplies available for export are down.
“China has to resume purchases of U.S. soybeans,” Oil World said in its latest newsletter. “The South American supply shortage will make it necessary for China, in our opinion, to import 15 million tonnes of U.S. soybeans in October 2018/March 2019, even if the current trade war is not resolved.”

1 comment:

  1. Good time to raise the price of soybeans. Thanks for the info. This may be the result of the entire trade war.