Higher energy costs limit Chinese soybean demand
A slowdown in China’s economy is cutting into soybean import demand.
Guy Allen, senior economist with the International Grains Program at Kansas State University, tells Brownfield higher coal prices in China due to a trade dispute with Australia are having a broad impact on industry, including soybean crush rates, “China’s basically shutting down a lot of their industry because of electricity and power shortages based on short supplies of coal, but if you’re running your crushing plants, you don’t need the soybeans to feed them.”
Allen says higher energy costs are also driving global input and commodity prices.
Just over a month into the new marketing year, U.S. soybean export sales are behind last marketing year’s pace.