U.S. soybean producers are increasing their attempts to broaden their export destinations, while still considering China as an essential customer, even with the current trade disagreements between the nations, stated the leader of a major industry group.
Jim Sutter, the CEO of the US Soybean Export Council, noted that despite ongoing worries about potential interruptions, China’s substantial appetite for soybeans—a vital product used in both food and animal feed—will keep the U.S. as a key provider to the largest global marketplace for this crop.
For many years, China and the U.S. have relied heavily on each other when it comes to soybean trade, making these beans a key element in their negotiations during U.S. President Donald Trump’s first term. The two nations plan to continue holding discussions. upcoming phase of trade talks in London on Monday, after an extensive telephone conversation between their presidents the previous week.
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We have been putting in significant effort... ensuring a wide variety of markets where US soybeans can be exported," stated Sutter. "Despite this, we have maintained activities in China for 43 years and regard China as the top buyer for US soybeans.
China procures more than 80 percent of the soybeans required for its extensive livestock and processing industries, whereas the United States sells around half of what it produces, as indicated by official statistics from both countries.
Nevertheless, tense bilateral relations over the past few years have prompted China to to diversify its supplies , decreasing its reliance on the American market — even though the crop continues to be one of the United States’ leading agricultural exports.
Up till now, the trade war hasn't caused disruptions in actual export deliveries because most orders aren’t made until after the autumn harvest in North America, according to Sutter.
Nevertheless, he cautioned that "the apprehension surrounding the potential lack of an open marketplace between China and the US in the upcoming autumn is disheartening crop prices for American farmers, affecting both their current sales and anticipated future yields."
Over the past few months, China has relied heavily on Brazil, their primary provider of soybeans, following the completion of their harvesting period. However, according to Sutter, substantial interest in U.S. soybeans will persist once the American shipping season restarts in either September or October.
"As far as I can tell, the demand in China remains quite high," he remarked, highlighting the nation’s significant requirement for soybean meal in both agriculture and industry.
In 2024, US soybean imports constituted 21 percent of China's total soybean imports, with Brazil contributing 71 percent, as reported by Chinese customs statistics.
Reflecting on the Phase 1 agreement that Beijing and Washington reached during the 2018-19 trade war, Sutter said he was optimistic about ongoing negotiations and predicted a quicker, potentially more comprehensive deal in the next few months.
I believe each side is eager for an outcome where both can benefit equally from a favorable agreement.
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The article initially appeared on the South ChinaMorning Post (www.scmp.com), which is the premier source for news coverage of China andAsia.
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