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USSEC CEO thinks Chinese soybean purchases are solid
China continues to buy large amounts of U.S. soybeans. But some analysts wonder whether the Chinese will actually take delivery of all of the soybeans they’re buying.
The CEO of the U.S. Soybean Export Council, Jim Sutter, thinks they will. Sutter says the Chinese seem determined to get their domestic pork production back to pre-African Swine Fever levels.
“The purchases that we’ve seen for 2021, I believe that it’s really actual need, or demand, that is driving these purchases,” Sutter says. “I think they are feeding soy like crazy as they try and ramp up and get back to this production.”
Sutter says the Chinese government recently instituted a ban on the use of antibiotics in pork production, which could be another reason for the increase in soybean demand.
“Our team on the ground thinks that they’ve increased soy utilization—or increased the percentage of soy in the rations—trying to make up for this lack of antibiotics. Trying to make sure the animal are extra healthy,” he says.
Sutter spoke during a webinar hosted by the Iowa Economic Development Authority.
