Huge U.S. soybean sales contradict China’s import slashing plans: Braun

Huge U.S. soybean sales contradict China’s import slashing plans: Braun

(The opinions expressed here are those of the author, a market analyst for Reuters. )

FORT COLLINS, Colo.- U.S. soybean exporters have recently made record old-crop sales and new-crop bookings are well above normal, putting an awkward spin on China’s latest claim of sharply reducing soybean demand.

Overseas demand for the U.S. oilseed has lagged last year’s high as expected, but severe crop losses in South America and rising global prices have recently awakened buyers for both the current crop and next year’s crop.

As of Feb. 10, U.S. soybean export sales for the 2021-22 marketing year ending Aug. 31 totaled 48.1 million tonnes, some 86% of the Department of Agriculture’s full-year forecast. Coverage was 77% four weeks earlier.

That is below 97% on the same date last year but only slightly behind the pre-trade war average, and sales are still coming in. USDA announced on Thursday that 120,000 tonnes of old-crop U.S. soybeans were sold to unknown buyers.

This flurry of old-crop bookings, some 6.3 million tonnes between Jan. 1 and Feb. 10, is likely a record for the period and up 28% from last year’s more than decade high. That includes more than 2 million tonnes in net sales to China and about