By Ryan Hanrahan
Bloomberg’s Jeff Sutherland and Ilena Peng reported that “China has agreed to buy 12 million metric tons of soybeans this year, Treasury Secretary Scott Bessent said, providing some relief to US farmers who have anxiously awaited the resumption of exports to the Asian nation. For the next three years, China has agreed to buy a minimum of 25 million tons annually, Bessent said Thursday on Fox Business.”
“President Donald Trump said earlier that China will purchase ‘tremendous’ amounts of American soybeans, following a meeting to hammer out a wide-ranging trade deal with his counterpart Xi Jinping. Trump said China will start buying immediately, but didn’t provide any additional details,” Sutherland and Peng reported. “The agreement paves the way for the reopening of a trade that was worth more than $12 billion last year and is crucial for US farmers who have faced prolonged financial strain.”
“A commitment of 12 million tons for this season is in line with many analysts’ forecasts. China has little need for additional soybeans currently as it has built up ample supplies with record shipments from South America,” Sutherland and Peng reported. “The amount is a ‘fairly sizable reduction from a historical standpoint,’ said Brian Grete, a senior grain and livestock analyst at Commstock.”
“In the longer term, purchases of 25 million tons a year would be ‘basically getting back to normal,’ Grete added, potentially helping farmers forecast export demand and build out balance sheets for the longer term,” Sutherland and Peng reported.
Source : illinois.edu