October 15, 2018

US soybean exports to China see drastic fall  

US soybean outstanding sales to China covering the period Sept. 1-27 are 85% below last year, according to the Oct. 4 US Exports Sales.

The sales report said that anemic weekly sales and significantly lower outstanding sales indicate that there is not much interest in purchasing US soybeans by China, primarily due to its decision to include soybeans on the list of key US commodities that are subject to retaliatory tariffs.

The US Department of Agriculture (USDA) said US soybean exports to China typically reach their lowest levels in summer and then build strength as harvest progresses. However, it added, "a large pullback in Chinese demand for US soybeans appears likely to continue well into 2018-19", citing the trade tensions between the US and China.

Accumulated exports to China in Sept.1-27 were only 67,000 tonnes, down 97% or 2.5 million tonnes less than last year.

The USDA estimates that the 2017-18 US soybean market share in China has fallen to 29% from 39 % in the previous year, while Brazil surged to 66% from 48%.

Trade data from the US Census Bureau showed that US soybean exports to China in August-September were the lowest in volume since 2013-14 and the lowest in value since 2009-10.