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
Treat storage as risk management and logistics, and budget to break even since export growth is unlikely to absorb bigger U.S. corn and soybean crops.
Escalating U.S.–China tensions threaten soybean demand as farm finances are stretched further.
Lewis Williamson, from HTS Commodities, joined us to share insights on the farm economy from producers in the field.
Treasury Secretary Scott Bessent stated this week that the government will intervene to help, following China’s withdrawal from the U.S. soybean market. One trader says the industry will remain in a holding pattern until Tuesday.
University of Illinois Ag Economist Gary Schnitker says early projections indicate soybeans will be more profitable than corn in 2026.
Trump’s upcoming talks raise hopes for U.S. soybeans, but China’s record purchases from Brazil and Argentina show America’s market share remains under heavy pressure.
Farmers face tighter barge capacity and higher freight costs during peak harvest.
Bigger-than-expected corn and wheat stocks are bearish for prices, while soybean figures were neutral. Farmers may face additional price pressure as harvest accelerates.
