USB on overall positive global demand for US beans
The vice president of market intelligence with the United Soybean Board says the strength in global demand is good for soybeans long term, “The year over year change we’re seeing between the ‘19/20 marketing year and the ‘20/’21 marketing year is pretty substantial.”
Mac Marshall tells Brownfield the upward revision in last week’s report of 2 million metric tons to China’s expected imports for this marketing year is a good sign but they’ll still need to pick up the pace this marketing year.
“The Chinese Ministry of Agricultural and Rural Affairs had also updated its expectations for China’s imports over the balance of the ‘19/’20 marketing year and think it actually increases by 3 million metric tons.”
Plus, he says US pork exports to China this year so far are 30 times what they were a year ago, because of African Swine Fever.
“Obviously that’s not a direct export of soybeans but, naturally, we’re feeding them here domestically and then sending value-added product over to China. So, that’s creating a good disappearance channel, as well as another commodity that’s being utilized.”
Marshall says a lot of Brazil’s soybean crop is already sold and that presents a lot of opportunities for U.S. beans.
He says all eyes are on the weather for soybean crop development ahead of next month’s report.