China is continuing to ramp up its purchases of U.S. soybeans despite the uncertainties regarding the Asian nation’s ability to fulfill its Phase One Trade Agreement commitments with the U.S.
Last Thursday made it eight consecutive days that the USDA announced additional export sales of soybeans to China and other locations. The USDA says private exporters filed reports of agricultural export sales totaling 132,000 metric tons of soybeans for delivery during the 2020-2021 marketing year, which will begin on September 1.
John Baize, an analyst with the U.S. Soybean Export Council, says as Chinese buyers rush to fill deliveries that crushers will need over the next few months, U.S. soybeans coming from the Pacific Northwest are $6 cheaper than Brazil’s, giving American soybeans a competitive edge.
USDA also reported export sales of 211,300 metric tons of soybeans for delivery to unknown destinations during the 2020-2021 marketing year. Baize says these are likely headed to somewhere in the European Union.