Soybean exports could come to screeching halt
A market analyst says the pace of U.S. soybean exports could come to a screeching halt after the first of the year.
U.S. Commodities president Don Roose tells Brownfield demand typically shifts from the U.S. to South America following Thanksgiving.
“It hasn’t really been that aggressive yet. In fact, we continue to have weekly and almost daily buying by the Chinese for whatever reason, but they want to secure supplies. They are at three-year high crush margins.”
China imported nearly eight million tons of soybeans in November, the highest in nearly a year.
Roose says the U.S. has enjoyed being the only shop in town recently, but Brazil is poised to begin harvesting a big crop very soon.
“After the first of the year, if it looks like we have the green light on a big crop in South America, (we expect) our export pace to come to a screeching halt. That’s what is anticipated with the Chinese already front-loaded on purchases out of the U.S.”
Roose says it’s going to be a very competitive global market for soybeans, particularly with continued strength in the U.S. Dollar.
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