Foreign media: U.S. soybean exports have been impacted by the China-U.S. trade war, but a trade agreement was recently reached, with China agreeing to purchase 12 million tons of U.S. soybeans this year, half of historical levels, and committing to purchase 25 million tons annually over the next three years, approaching pre-trade war levels.
The soybean processing capacity in the U.S. Midwest and the Great Plains has grown in recent years, mainly for producing soybean oil and meal to meet the demand for renewable diesel, but it still cannot fully compensate for the impact of the loss of Chinese demand. Some farmers choose to store soybeans waiting for higher prices, especially in northern areas that rely on rail exports, where increased storage costs may compress profits. Southern farmers, due to proximity to processing plants or the Mississippi River export routes, have more sales options.
Although new trade agreements and increased exports to Egypt and Vietnam, it is difficult to completely replace the Chinese market. Increased reliance on Brazilian soybeans by China has also made U.S. farmers cautious about trade commitments.
Original: www.toutiao.com/article/1847841616523267/
Statement: This article represents the views of the author himself.