Is China Really on Pace to Help U.S. Soybeans Set Export Records?
Lower price of U.S. beans means less ground is being covered when it comes to Phase 1 trade deal
China has been buying U.S. soybeans at what seems like a breakneck pace for about two months now, increasing the probability of record U.S. exports to the Asian country over the next year, reports AgWeb.
But while a record volume becomes more realistic as the sales pile up week after week, the lower price of U.S. soybeans relative to most prior years means that less ground is being covered when it comes to the Phase 1 trade deal, which is based on the exported value.
Past sales paces and simple math suggest China should be on track to at least match 2016-17, which featured record U.S. soybean exports to the Asian country of more than 36 million tonnes.
But just because the scenario pencils out, that does not mean it will play out. Sales must turn into actual shipments, and previous seasonal Chinese buying patterns might be less reliable post-trade war.
Read the full report at AgWeb.