Lower forecast for export sales to China
The value of ag goods that China will buy from the U.S. may fall short of USDA’s expectations a few months ago. The department is looking for China’s purchases to hit $39 million dollars in the 2022 fiscal year.
However, in this week’s new forecast, it cut that to $36 billion. The department’s chief economist says that the Asian nation’s needs for things like soybeans have slowed down.
According to Seth Meyer, “Slower China demand growth does limit any additional volumes going to China, but that is also what’s contributing to lower prices. You know, not as much growth in demand as we’ve seen perhaps in prior years from China as their hog herd stabilizes.”
He says that even the lower projections of $36 billion would be a new record. It would be two and a half billion dollars higher than last year.