Canada Set to Export More Soybeans to China
U.S. soybeans become less competitive after 25% import duty was imposed in July
More Canadian soybeans are finding their way into the Chinese market as U.S.-origin soybeans become less competitive after the 25% import duty was imposed from July 2018, reports S&P Global.
About 10 vessels of soybeans have been sold to China, on a CFR basis, in August at prices ranging from 270 to 280 cents/bushel over November CBOT Futures contact, traders said. These are around 40 cents/bu cheaper than soybeans of Brazilian origin on CFR basis.
Canada exports a total of 5.5 million mt of soybeans annually according to USDA, with about 45% of these going into China in the 2017/18 marketing year. However, in 2018/19 traders expect this share to increase to 80%.
The biggest issue with the increase in exports remains the railway logistic bottleneck.