News
China’s “shop vac” effect on U.S beans gone
U.S. soybeans that typically went to China through the Pacific Northwest are piling up in the northern Midwest because of the trade war, “The soybeans are just backing up in the pipeline because, traditionally, China would be like a big shop vac, sucking up all the soybeans and buying from the Gulf and the PNW and we’re just not moving any soybean from the PNW,” says Paul Burke is senior marketing director for the U.S. Soybean Export Council (USSEC). He told Brownfield at the NAFB convention last week, that they’re working hard on getting beans from North Dakota, South Dakota and Minnesota to underfed markets in the EU, Northern Asia – other than China – and, Southeast Asia, “We need to move a mountain of soybeans to export markets that traditionally we shared with competitors such as Brazil and Argentina. Their soybeans are getting purchased by China at big premiums.”
Burke says market share needs to reach 90 to 100% of those other markets so soybean exports, at the end of the year, reach the same level as this past year.
AUDIO: Interview with Paul Burke~
Nicely explained Paul.