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China’s soybean demand could continue to improve

The USDA is expecting China to import 80.5 million tons of soybeans this marketing year.

Allendale Director of Research Rich Nelson says that number could go higher, “We’ve already seen a very aggressive pace in the past few months. Also in the future months, we’re going to have lower DDG imports, that’ll be seen by March, we’ve going to have the Chinese hog start re-building, that’s actually going to start hitting around spring, so that March-April timeframe as well. The last piece of interest is the lower imports of rapeseed.”

Nelson says, realistically, U.S. exporters will get little if any of that business, but increased exports from Argentina and Brazil will ease global supply issues.