Grain merchants are racing to ship out a record-large harvest ahead of the upcoming presidential election. Marine Link says fears of renewed trade tensions with China, the top soybean importer, are driving the push.
USDA data released earlier this week says almost 2.5 million metric tons of U.S. soybeans were inspected for export the previous week, including almost 1.7 million tons headed to China, the largest amount in the last year.
Prices are hovering near four-year lows, and if this heightened export demand doesn’t last, that may leave the U.S. with a glut of oilseeds. Tariff threats are causing some Chinese importers to not take U.S. shipments from January 2025 onward.
Buyers are said to be looking to Brazil’s soy crop. They’re paying up to 40 cents a bushel more than they would in the U.S. in a quicker than expected seasonal shift that’s shrinking the U.S. export window.
NAFB news service
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