The USDA is reporting Wednesday sales of 396,000 metric tons of soybeans to China as the forecast for U.S. exports this year continues to rise on increasing Chinese demand.
The latest USDA daily report shows that half of the latest export sales – 198,000 tons – is for 2019-20 delivery and half is for the upcoming marketing year that begins Sept. 1.
The Wednesday announcement follows a sale to China reported Tuesday for 136,000 tons of old crop U.S. soybeans. And last week USDA reported a daily sale of 378,000 tons of U.S. soybeans to China, including 242,000 tons for 2020-21 delivery.
Meanwhile, USDA’s Foreign Agricultural Service is raising its forecasts for both overall U.S. soybean exports and Chinese imports. A combination of strong Chinese demand and the quick pace that Brazil is selling off its latest crop will translate into substantial U.S. exports in the final several months of the year, FAS says in a report released this week.
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“U.S. soybean exports are projected to rise 10.2 million tons to 55.8 million as increasing China demand and tight Brazil supplies in late 2020 boost sales,” according to the analysis. “Expansion of China’s swine herd, recovering from African swine fever, will help boost feed demand and drive both crush and import demand higher.”
In other parts of the world, Bangladesh, Vietnam and Pakistan –strong markets for the U.S. – are expected to increase imports this year. European Union soybean imports are expected to decline as the bloc buys more soymeal.
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