A market analyst says the U.S. is giving China more time to fulfill its soybean purchase commitments.
Greg McBride, director of brokerage for Allendale, says China originally committed to buying 12 million metric tons of U.S. soybeans by the end of December.
“Scott Bessent came out effectively saying ‘we’ll kick the can a little bit, they’re doing what they need to do, they are doing their due diligence, and we’ll give them until the end of February to get these purchases made.’”
He tells Brownfield the updated deadline is not a delivery date.
“That doesn’t necessarily mean delivered soybeans,” he said. “That means purchased soybeans with the deferred delivery maybe a month to four months out.”
McBride says China has lived up to its commitments so far.
“Three million tons so far that we know of through flash sales,” he said.
He says 12 million tons of soybeans is a positive step forward, but it doesn’t fix all of the demand issues U.S. producers are facing.
