With an Eye on China, U.S. Will Plant More Soybeans

U.S. soybean markets have been supported by robust trade with China. Current commitments to China are 75 million bushels higher than last year, but down for nearly every other country.

Clearly, the U.S. is carefully monitoring China’s seasonal move to South American supplies and the weather reports from South America.

The price support from Chinese demand is vulnerable to a seasonal shift to South American supplies and the Chinese fulfilling their stock-building agenda.

The industry is questioning the price-supporting potential, due to lower wheat and cotton acreage. Still, soybeans are expected to need a substantial increase in acreage to meet projected demand.

Source: Rabobank

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Planting Stories

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