Soybean Exports to China are Up

April has been a promising month for corn producers with near record numbers on the Chicago Trade Board, and all thanks to a large purchase from China. Soybean producers may be as lucky as harsh weather conditions threaten China’s farmers.
China purchased 120,000 metric tons of oilseed for delivery before September 1 according to the United States Department of Agriculture. The same report states that China ordered an additional 691,000 tons for delivery for the remainder of the year after that.
Bill Nelson, a senior economist for Doane Agricultural Services in St. Louis, said, “Another sale of soybeans to China is supporting the rally. The market is getting a bullish kick from the Chinese purchase of U.S. corn.”
A grain administrator in China added that stockpiles of grain and cooking oil need to be increased to help stabilize prices on the current market.
Farmers are planting extra acres of soybeans to meet the demand according to the USDA. Nelson added, “The fast pace of corn plantings is giving soybeans a boost.”
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