AGRIBUSINESS: Despite Outlook, China Wants U.S. Beans
While China turns away shipments of U.S. corn for GMO contamination, analysts also worry about soybean exports. China may begin canceling some of its shipments in the coming months.
Iowa Soybean Association Marketing Director Grant Kimberley says it’s not uncommon for China to cancel some American shipments, but thinks they will be back, even when South American harvest picks up.
Kimberley says, “South America has their logistics problems, and the Chinese buyer and other buyers around the world still tend to come back to the United States to buy some short-term or spot purchases.”
Even later in the year when the U.S. is not as competitive on a price basis he says, “They’ll still buy some from us because they know they can get the supply quickly out of the United States.”
Kimberley says there may be some cancellations but the outlook is positive, “Overall, you’re going to see a strong demand for United States and Iowa beans in particular.”