Wheat growers declared victory—”a big win”—with Brazil’s agreement on Tuesday to allow duty-free import of wheat grown outside of a South American trading bloc. The so-called tariff-rate quota could result in exports worth more than $100 million a year if U.S. wheat dominates …
China will remain the world’s largest soybean importer in coming years even if the trade war with the United States is not settled, but it won’t be buying as much of the oilseed, said USDA analysts on Wednesday.
Roughly 11 percent of U.S. corn ethanol was exported in 2018, a record 1.7 billion gallons worth $2.7 billion, said ethanol trade groups on Wednesday. Exports were nearly 25 percent higher than the previous record of 1.4 billion gallons, set in the preceding year, said the groups.
In a break from the trade war, China made its third purchase of U.S. soybeans in a week, said the USDA on Wednesday. The purchases followed a meeting between President Trump and Chinese President Xi Jinping in Buenos Aires that Trump said would result in significant exports to China.
China made its first major purchase of U.S. soybeans since Donald Trump and Xi Jinping agreed two weeks ago to try to settle the Sino-U.S. trade dispute, said the USDA on Thursday. The purchase, however, was too small to convince growers that China will return to its role as the biggest customer for U.S. soy exports.
As a consequence of the Sino-U.S. trade war, Brazil is likely to ship nearly 60 million tonnes of soybeans to China this calendar year, a 9-percent increase from 2017, say USDA analysts. While the United States is effectively shut out of China because of high tariffs, "U.S. trade opportunities for markets outside of China would rise by nearly 13 million tonnes in the coming (trade) year, compared to 2016/17," according to the monthly Oilseeds: World Markets and Trade report.
U.S. farmers and ranchers were blindsided by the Trump trade war, but they will adapt quickly to lower commodity prices and disruptions in the export market, said Agriculture Secretary Sonny Perdue on Wednesday. “Farmers are smart,” he said, swatting down the idea that the White House will write another agriculture aid package after earmarking up to $12 billion for this year.
U.S. soybean exports will be down a quarter-billion bushels in the coming year due to steep Chinese tariffs on the oilseed, estimated the USDA on Thursday. In a boomerang effect of the U.S.-China trade war, Brazil would indisputably replace the United States as the world’s largest soybean grower as China scouts, without full success, for alternative soy suppliers.
Thanks to continued strong demand from overseas buyers, U.S. corn exports this trade year could be the second highest ever, the Foreign Agricultural Service said on Thursday.