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Senior Contributor

Soybean market

This could go into try Marketing section but has a political slant so might be rejected so posting here.

 

https://www.bloomberg.com/news/articles/2019-01-17/when-it-comes-to-soy-china-is-getting-more-from-t...

 

When the U.S. forged a trade truce with China last month, President Donald Trump boasted that the largest soybean importer was back to buying “tremendous amounts” of American supplies.

 

Chicago futures rallied in the days around the accord. But in the weeks since, prices have retreated as the benefits for China become clearer.

 

While both Chinese buyers and U.S. farmers are casualties of tit-for-tat tariffs, the truce initially was seen as a major boon for American suppliers, with expectations of about 10 million metric tons in Chinese purchases. But China is said to have bought about half that amount and, by dipping its toe back into the U.S. market, it not only generated goodwill for the trade talks, it also managed to lower the premium for soy from Brazil, its other major supplier.

 

It goes on to point out that China will revert to buying from Brazil now as their crop comes off and US beans will remain in storage especially compounded by the lower demand because of the disease in China's swine industry.

2 Replies
Highlighted
Senior Contributor

Re: Soybean market

Sounds to me like the Chinese doing what the Chinese have always been good at doing.  Playing the press and the buyers against each other and making money on both sides.

 

Just business.

Highlighted
Honored Advisor

Re: Soybean market

C r o o ked China and you can ask anyone who has dealt with them, they are c r o o ks  are cutting the nose off their face in THEIR one sided trade war.   They may very well wreck their country because of their childish demand to screw the United States.  Soybeans is caught in the middle because it`s one of the few things that they buy from us. 

 

If Brazil sells more beans to China and Argentina imports US beans to sell to China, things will eventually level out