June 16, 2008
US expects China to sign huge soy contracts
The conclusion of a visit from soy buyers in China to the US could very well mean huge transaction of soy purchases, following signing ceremonies held in St. Louis.
The Chinese delegation spent 10 days meeting with the soy industry and producers in Illinois, Missouri, Washington D.C. and Indiana. The visits included Louis Dreyfus Biodiesel and Soy Processing Plant in Claypool, Becks Hybrids in Atlanta, and Indianapolis based Dow Agro Sciences. The China Country Director for the American Soybean Association International Marketing arm, Phil Laney travelled with the delegation, stating the visit is "to remind the US government and US public that China does indeed buy certain things from the US. In the case of soy, China is our number one customer, a customer that has been steadily growing in size and importance for a number of years."
Laney said China last year signed for 9 million tonnes but the US has shipped 14 million tonnes in 2007, valued at US$5 billion.
Laney added that contracts signed this year will be "even more valuable because of the high price of beans".
The companies signing contracts combine to represent about two-thirds of all Chinese soy imports.
The work in China to build demand for US soy is substantially supported by soy checkoff dollars, and future demand looks good, he said, as the Chinese government estimates that their country's meat production will double by 2030.
