Suderman: Strong dollar continues to hamper soybean sales to China
The USDA lowered its soybean export projection in Thursday’s stocks report because of heavy competition from Brazil and slower demand from China.
INTL FCStone market analyst Arlan Suderman says the Chinese have been aggressively buying soybeans from Brazil. He says the strength of the U.S. dollar and weakness of Brazil’s Real make it difficult for U.S. beans to gain much traction.
“Depending on which month you want delivery, Brazilian beans are 30 to 40 cents per bushel cheaper than U.S. beans at the Chinese port,” Suderman says. “So that’s why China is continuing to aggressively buy soybeans from Brazil for delivery through July right now.”
Suderman thinks China will eventually start buying U.S. soybeans.
“I do think China is going to be more aggressive buying U.S. soybeans, probably in the new marketing year. But we’ve really got to get this currency exchange rate fixed and get the dollar weaker to the BRL.”
Suderman made those comments during a Thursday webinar.