China’s livestock sector is booming even as the country recovers from African swine fever, and the country’s demand for feed is fueling optimism for U.S. corn and soybean exports in the 2020-21 marketing year, which begins Sept. 1.
Chinese importers closed contracts to buy 720,000 metric tons of U.S. soybeans – most of it for new crop – according to a USDA announcement Thursday, signaling the country is calculating the growing tightness of Brazilian supplies and locking in deliveries past September.
The fact that Chinese importers purchased between two and three cargoes of U.S. soybeans on Monday has helped quell concerns that the two countries might be rekindling their trade war, but the uncertainty of the situation continues to plague buyers and sellers.
China is buying a lot more U.S. ag commodities and tearing down major import restrictions — just as it promised in the “phase one” trade deal — but the successes of the pact are being drowned out by growing animosity on both sides of the Pacific.
U.S. soybean exports have been steadfastly weathering the severe impacts of COVID-19 around the world, but the pandemic is impacting foreign customers in waves and new threats continue to manifest as nations around the world work to keep their people fed.