China likely to continue U.S. corn and soybean purchases
A University of Missouri ag economist says he believes China will continue purchases of U.S. corn and soybeans.
Seth Meyer tells Brownfield even after the WASDE report showed low ending soybean stocks, China’s rebuilding of its hog herd will continue to drive the soybean market.
“We saw them make some pretty big buys when prices were much higher than they are now, right,” Meyer said. “If they need it, there’s a tendency for them to buy it.”
Meyer said China might expand its corn trade-rate-quota by four times its size which would be about one billion more bushels of corn trade. He said China’s expansion of its trade-rate-quota for corn is also a positive signal.
“The USDA continues to keep Chinese corn imports down there at about seven million metric tons,” he said. “We already have more sales on the books ourselves than seven million metric tons.”
But he said there is risk until sales to China turn into shipments to China.
Looking ahead to next year, Meyer said China’s purchases of U.S. corn and soybeans in 2021 depends on the size of Brazil’s crop.