There were any known sale deals with Chinese importers after the closure of an annual U.S. soy exporters’ conference compared to other years where the conference ended with export contracts worth billions of dollars being signed with Chinese importers. Sot beans is the main cash crop of the United States.
Bilateral trade of soy beans has virtually come to a standstill because of the US-China trade war and there are concerns among US farmers that during the primary shipping season this autumn there would a shortage of demand for the crop even as the farmers are expecting to harvest record volumes of the crop this year.
And even though there were deals with importers form other countries such as Mexico were signed during the conference, they were much smaller compared to the exp[ort deals with China in earlier years.
However, the U.S. Soybean Export Council’s (USSEC) annual Global Trade Exchange conference in Kansas City was attended by a delegation of Chinese soybean importers. The delegation did a tour of a Missouri farm and it included a number of top soybean processors of China such as COFCO and Yihai Kerry. In addition, there were also Chinese representatives of U.S. companies Cargill Inc and Bunge Ltd. The delegation met with U.S. farmers, industry representatives and traders.
Last year, more than $12 billion worth of soybeans was imported by China from the US which accounted for almost 60 per cent of the total soy exports of the US. But the trade this year has almost dwindled to nil after the imposition of a 25 per cent tariff on US imports in China by the government there on July 6 as a tit-for-tat reply to US tariffs on Chinese exports into the US.
The trade dispute between the world’s two largest economies has so far seen soybeans as the largest hit agricultural produce.
If the trade war persists, the import of soybeans by China for the 2018-19 season could fall to 86 million tonnes, from 96 million in the current season, said Mu Yan Kui, COO of Yihai Kerry. The demand for sot for feeding by hog and poultry farms can drop drastically in China as the farmers make use of government stocks and by reducing soymeal use in rations and making use of alternative feeds such as sunflower or rapeseed meal.
“If the trade conflict cannot be solved quickly and effectively, it will definitely reshape the global market,” he told conference attendees.
Despite the situation, US exporters are unwilling to give away the hard-earned business. it is estimated that the US soy exporters have expended anything between $120 million and $130 million in Chinese market development during the last 36 years.
“We made a conscious decision not to suspend our programs in China so we are continuing to operate our promotional and educational programs there. Part of that is bringing a delegation here,” Jim Sutter, USSEC’s chief executive officer, said in an interview at the Missouri farm.
(Source:reuters.com)
Bilateral trade of soy beans has virtually come to a standstill because of the US-China trade war and there are concerns among US farmers that during the primary shipping season this autumn there would a shortage of demand for the crop even as the farmers are expecting to harvest record volumes of the crop this year.
And even though there were deals with importers form other countries such as Mexico were signed during the conference, they were much smaller compared to the exp[ort deals with China in earlier years.
However, the U.S. Soybean Export Council’s (USSEC) annual Global Trade Exchange conference in Kansas City was attended by a delegation of Chinese soybean importers. The delegation did a tour of a Missouri farm and it included a number of top soybean processors of China such as COFCO and Yihai Kerry. In addition, there were also Chinese representatives of U.S. companies Cargill Inc and Bunge Ltd. The delegation met with U.S. farmers, industry representatives and traders.
Last year, more than $12 billion worth of soybeans was imported by China from the US which accounted for almost 60 per cent of the total soy exports of the US. But the trade this year has almost dwindled to nil after the imposition of a 25 per cent tariff on US imports in China by the government there on July 6 as a tit-for-tat reply to US tariffs on Chinese exports into the US.
The trade dispute between the world’s two largest economies has so far seen soybeans as the largest hit agricultural produce.
If the trade war persists, the import of soybeans by China for the 2018-19 season could fall to 86 million tonnes, from 96 million in the current season, said Mu Yan Kui, COO of Yihai Kerry. The demand for sot for feeding by hog and poultry farms can drop drastically in China as the farmers make use of government stocks and by reducing soymeal use in rations and making use of alternative feeds such as sunflower or rapeseed meal.
“If the trade conflict cannot be solved quickly and effectively, it will definitely reshape the global market,” he told conference attendees.
Despite the situation, US exporters are unwilling to give away the hard-earned business. it is estimated that the US soy exporters have expended anything between $120 million and $130 million in Chinese market development during the last 36 years.
“We made a conscious decision not to suspend our programs in China so we are continuing to operate our promotional and educational programs there. Part of that is bringing a delegation here,” Jim Sutter, USSEC’s chief executive officer, said in an interview at the Missouri farm.
(Source:reuters.com)
