U.S. soybean exports boosted by South American struggles
The shrinking South American soybean crop continues to spark U.S. export sales.
Kent Beadle with CHS Hedging tells Brownfield adverse weather is expected to significantly reduce Brazilian production.
“Loss of production and loss of export capacity. And we’re seeing that manifest itself in a series of daily reported sales to various destinations, oftentimes specified as unknown destinations.”
He says China, and possibly some European countries, are likely behind many of those sales.
“And of course this is the time of year when the expectation is that a large Brazilian export program would be starting to ramp up. We still think Brazil is going to export beans, don’t get me wrong. It’s just that the size of their program is going to have to be curtailed to some degree.”
USDA export data shows since the beginning of the calendar year, purchases by unknown destinations and China total around 2 million tons.