New crop soybean sales are falling behind, approaching 20-year lows. China has not booked a single shipment, and analysts say demand could drop even more.
The peak marketing season in the United States will come later this year, but China already has a lot of soybeans on hand. Imports there were steady back in May on a push for more oilseed processing. They have so much on hand, Reuters reports that some crush plants are shutting down because of storage issues.
While China has not bought any new crop beans just yet, there is still time. In 2005, the first Chinese purchase came during the week ending August 11th.
Related Stories
The Final Grain Stocks Report may be the last key figures we see if a government shutdown halts future updates.
“Those could’ve easily been our beans going over there. It goes to show that if that opportunity is there, China would be willing to buy.”
Strong corn exports are anchoring U.S. trade, while soybean sales remain steady, but shipments lag.
U.S. soybean farmers are growing increasingly frustrated by Argentina’s gains in Chinese grain contracts and Trump’s pledge of economic support for the South American ally.
Midwest corn and soy producers are monitoring for disease and lower yields due to the ongoing drought over the last 30 days.
Argentina hopes to boost demand, but critics see the move as a blow to American farmers.
