The 2018-19 marketing year has gotten off to an extremely slow start for U.S. soybean exports as China sits on large domestic stockpiles and the Brazilian harvest is only a few months away, according to USDA data compiled by the American Farm Bureau Federation.
The U.S. has shipped only 7.4 million bushels of soybeans to China in the first seven weeks of the new marketing year, which began Sept. 1, data from a recent Federal Grain Inspection Service report show.
That’s a 97 percent drop from the same time period last year when the U.S. shopped 239 million bushels.
USDA’s latest monthly supply and demand report shows China has 825 million bushels in beginning stocks that it can draw down on as the country’s importers largely shun the new U.S. crop. China hit U.S. soybeans with a 25 percent tariff (on top of an existing 3 percent tax) earlier this year in retaliation for U.S. tariffs meant to punish China for intellectual property theft.
“With large inventories on hand in China, it’s no surprise U.S. soybean exports to that country are down to start the 2018-19 marketing year. Way down.” according to the Farm Bureau analysis.
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