Time to export soybeans to China is ‘now’
A University of Missouri ag economist says now is the time for the U.S. to capitalize on China’s soybean needs.
Seth Meyer tells Brownfield the window to export soybeans is now with Brazil’s stocks depleted and China rebuilding its hog herd.
“How much carry is there in the soybeans market? Not much,” he said. “They’re saying we want your beans now, not so much in six months.”
He said while he’s uncertain why China’s soybean purchases have slowed in the last week, the size of the Chinese market has been underestimated for the last decade.
Meyer said the export market for U.S. soybeans will move with the expected size of Brazil’s crop.
“Chinese demand appears to have rebounded after African Swine Fever,” he said. “So, if that’s real demand sitting out there and not storage demand, they’ll be watching that Brazilian crop develop.”
Meyer said the trade relationship between the U.S. and China is returning to ‘normal’ after the trade war.
Trade to China could remain slow from October 1st through October 8th because of China’s Mid-Autumn Festival