China Buys 80 Percent of Iowa Soybeans
July 14, 2017
Chinese buyers make a deal to purchase 460 million bushels of US soybeans, which is the second largest total for a single signing ceremony. Buyers signed 2 dozen contracts worth over $5 billion, close to a record, representing 80 percent of the soybeans Iowa produces each year.
The North Asia Regional Director of US Soybeans Export Council, Paul Burke, was in attendance at yesterday’s signing, and he joined us today to discuss the deal.
When asked him how this purchase compares to last year’s, Burke said, “Last year, in terms of the signing ceremony, the purchase was significantly larger, and the reason for that is that the Chinese government really wanted to make a clear demonstration in the closing of the 100-day trade negotiation process taking place between the US government and the Chinese government. China represents a market that purchases US products, not just an export machine, but it is also a significant purchaser of US food and agriculture products and other goods. This is a way they can demonstrate that.”
With that, we asked what he thinks the next steps moving forward from here are, such as trading more with China. “Yes,” he predicted, “I for sure think it is going to be a long term buyer of US soy. We still see lots of upside potential in the markets for growing consumption of soy and grain products. That’s because the Chinese government wants to urbanize and move 300 million people who are living a rural peasant lifestyle into an urban lifestyle with urban incomes, which will mean consuming more animal protein and vegetable oils…where they will increase their animal protein and vegetable oil consumption by a factor of 30 percent. Still a lot of upside potential,” he mentioned.
To learn more visit, iasoybeans.com.