Analyst sees Chinese buying spree “at face value”
DTN lead analyst Todd Hultman says he’s taking China’s current buying spree at face value.
“Understanding that not everything China buys can escape being cancelled later. And that usually depends on how South America’s crops turns out.”
He tells Brownfield aggressive soybean purchases make headlines, but when looking at the overall marketing year.
“We’re in a bit of a hole. This is the worst export total for corn in seven years, and for soybeans in six years.”
Hultman says it is encouraging that despite ongoing political tensions, China has remained an active buyer of U.S. soybeans. And with Brazilian supplies running out, he suggests China will have to keep coming to the U.S. for at least the next few months.