February 22, 2012

China to buy 10% US soy yield

A few officials of China made commitments to buy US$4.31 billion worth of US soy, which amounts to more than 8.62 million tonnes.

The China Chamber of Commerce for Import & Export of Foodstuffs, Native Produce and Animal By-products (CFNA) delegation, led by its president, Bian Zhenhu, signed 15 contracts with US companies that includeding ADM, AGP, Bunge, Cargill and CHS.

The signing ceremony was attended by US soy industry representatives, USDA officials and Iowa state leaders and dignitaries, in addition to Chinese guests who included the Ministry of Commerce, People's Republic of China (MOFCOM) delegation headed by Assistant Minister Yu Jianhua and the Hebei Provincial Commercial Delegation.

The signing was welcomed by both Chinsese and US delegates, as a sign of an increasing mutualism between the two nations.

The US produces approximately 35% of the world's soy. Since 1991, global soy demand has increased 151%.

Soy is the leading US agricultural export with roughly 55% of the US soy crop being exported. In 2011, the US exported some 40.86 million tonnes of soy. Of that, 24.37 million tonnes (~60 %) went to China.