The soybean market in the coming weeks will be focused on China and how it handles its massive demand for the oilseed while at the same time avoiding U.S. supplies facing a 25 percent tariff in the ongoing trade war with the Trump administration.
The fate of the North American Free Trade Agreement remains uncertain and a trade war with China continues to loom heavy over rural America, but the long-term forecast for U.S. soybean exports remains bullish, propped up by optimistic forecasts from the USDA.
You won’t find any tourists in the muddy, mosquito-ridden town of Barcarena in Brazil’s state of Pará, but you can’t miss the almost constant parade of trucks pulling in and out of port facilities under the scorching sun or torrential rainfall on the country’s northern coast.
Brazil, known and often reviled in the U.S. ag sector for its successful World Trade Organization challenge to U.S. cotton support programs, is now suspected breaking WTO rules by subsidizing its rice exports.
Brazil, the world juggernaut of agricultural production over the past 20 years, has the land, weather, labor and potential to increase soybean, corn and meat production even more dramatically over the next two decades, according to Brazilian and U.S. analysts.
The U.S. ethanol industry is fighting to maintain its record-setting growth despite the oil industry’s continuing attacks and the surge in global protectionism that threatens American exports of the corn-based biofuel.