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
China is making strategic moves by purchasing more soybeans from Argentina and may soon follow the EU and reopen its market to Brazilian chicken exports.
Farmers should watch for soybean export rebounds with harvest, while corn and wheat shipments remain strong and sorghum demand struggles.
Rollins says the new trade relationship with Taiwan, which is committed to buying a significant amount of U.S. soy, could not come at a better time for farmers facing financial strain.
Higher tariffs may shield some U.S. crops but risk retaliation, lost markets, and higher costs for growers. The WTO disputes highlight the fragile balance between trade policy, farm exports, and input supply chains.
Cheaper freight is helping exports move, especially corn, but weaker soybean demand looms large.
Grain shippers face lower freight values thanks to weak soybean exports and strong rail service, but barge traffic and forward Gulf loadings suggest continued uncertainty as harvest ramps up.
