A market analyst says he’s closely monitoring Chinese purchases of U.S. soybeans on the daily wire.
Tanner Ehmke with CoBank says China has a tight window to fulfill its commitment of 12 million metric tons.
“I’d say there’s room for the Chinese to continue buying at least into January,” he said. “The window is really closing quickly here. We’re going to need to see the Chinese step in over the next four to five weeks.”
The Trump administration recently gave China more time to reach its commitment by extending the deadline from December 31st to the end of February.
Ehmke tells Brownfield China has recently had a regular cadence of purchases, but he’s cautious it’s enough to meet obligations.
“The private crushers over in China still have a 13% tariff they have to pay on imported US soybeans, so the US is still at a disadvantage for private Chinese crushers.”
Ehmke says a record Brazilian crop would make it hard to compete in January.
