NASHVILLE, Tenn. (RFD-TV) — China has been largely absent from U.S. markets lately, but not when it comes to cotton. This week’s export sales data revealed some export purchases headed for the Asian nation. It is a buy that traders say is not surprising, given China’s limitations.
“So, in the case of cotton, they don’t have a lot of other countries to turn to other than the United States,” explained Brian Hoops. “There aren’t that many countries that grow that cotton. You look at where they can buy soybeans from -- well, they have a monster crop out of South America, both Brazil and Argentina this year. Big corn crops out of Brazil, record large there. They can buy corn and soybeans from other countries.”
Wheat is another area that could be under pressure this fall. Hoops says production has ramped up in places like Russia, Argentina, Australia, and Ukraine. All those nations, he says, are boosting wheat output over last year.
In the meantime, Senate Majority Leader John Thune is asking that farmers be allowed to use marketing assistance loans to help stay afloat.
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Beef industry groups seem to agree — market-based pricing, not federal intervention, best supports rancher livelihoods and long-term beef supply stability.
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Cattle groups say additional imports would offer little relief for consumers but could erode rancher confidence as the industry begins to rebuild herds.
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Lyndsey Smith with Real Ag Radio joined RFD-TV to share a Canadian perspective on the discussions.
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Bioethanol is becoming a global standard. For growers, that boom comes as drops in Mississippi River levels and in soybean demand occur in tandem, leaving barge space for corn and wheat.
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With China halting U.S. soybean purchases and talks tied to broader strategic issues, growers face renewed export uncertainty.
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