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Optimism for U.S. soybean demand in 2023

The CEO of the U.S. Soybean Export Council is optimistic China’s soybean demand will pick up, especially with COVID restrictions lifting. The USDA hasn’t reported a new export sale to China in the last month.

“We see people getting back into their traditional habit of going to restaurants and consuming meals out,” says Jim Sutter. “We think that will grow demand for meat and soy.”

Sutter says U.S. soybean exports to China aren’t too far off from the last marketing year.

“If Brazil’s record large soybean crop is realized it will clearly slow things down, especially when they start harvesting in earnest in February, March and April.”

The strong U.S. dollar and rising interest rates have put a damper on soybean demand outside of China, but Sutter is hopeful this will change in the new year.

“I think we could see a more robust global economy 6 to 9 months from now than people are thinking about today. It always translates to good demand for soy.”

Sutter also says there are opportunities to grow soy demand in emerging markets like Egypt, Europe and Mexico.