Record Sale of US Soybeans

Soybean sales reached their largest single day sale last week, shortly after a visit to the United States by Chinese President Hu Jintao. Private exporters agreed to sell 2.74 million tons of soybeans in the 2011-2012 marketing year, an increase from the previous sales high, 2.2 million, set in 2008.

This announcement tied into the recent visit by President Jintao, as China is the world’s largest importer of soybeans. Driven by a rising middle class appetite for pork and chicken products, fattened by soybean based feeds, China has been rapidly purchasing US soybean exports and currently imports 1 out of every four soybean rows grown within the United States.

President Jintao’s visit coincided with a series of purchase agreements between the United States and China. The recent sale, as well as news of the US-Chinese trade talks, helped lower the price of soybean, which have fallen for the March delivery, dropping roughly 19 cents, to $13.85 a bushel, according to the Chicago Board of Trade.  “The market had already anticipated that we’d be seeing some sales,” said Brian Hoops, president of Midwest Market Solutions, a South Dakota commodities brokerage house.

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Written by: Justin Ellison / Farm Plus Staff Writer