The new marketing year for soybeans kicks off today, and all signs indicate exports will get a strong start.
Data from the USDA shows China remains the largest buyer of U.S. soybeans, with a recent purchase of more than 150,000 tons. The Agency raised its forecast back in early August for the marketing year to little more than 2 million bushels, which is 20 million more than what was predicted in July. Experts say China has been purchasing more U.S. soybeans after a smaller than expected crop in Brazil.
Soybeans may be off to a good start, but USDA says overall ag exports could decline this fiscal year. 2022 saw a record-breaking $196 billion in ag exports, beating previous records by $23 billion.
Economists say it comes down to cotton, beef, and sorghum.
“Fiscal year 23 initial export forecast is for a little bit of a decline. We have one of the lowest harvested areas for cotton in decades, we’re in a contraction phase of the beef Cycle. Sorghum’s been negatively affected by drought,” said USDA Chief Economist Seth Meyer.
On the other hand, the Agency is projecting the U.S. will buy a record $197 billion worth of foreign ag, which could cause a $4 billion ag trade deficit.
Related:
Exports are on track to shatter records, but imports are creeping behind
U.S. ag exports are on track to break records this year
Will corn and soybeans continue their trend and show resiliency this year?
