Fear of 'disastrous situation' in farm economy as China targets huge US soybean business

Brazilian Soy Beans are pretty pricey!

Why not? We are easily replacing them as buyers.

As China whines, we are experiencing a flurry of U.S. soybean purchases by European buyers.

News of the sales, confirmed by the U.S. Department of Agriculture on Friday, helped to underpin benchmark Chicago Board of Trade soybean prices after U.S. President Donald Trump threatened to slap tariffs on an additional $100 billion of Chinese goods.

The USDA said 458,000 tonnes of U.S. soybeans were sold to undisclosed destinations, which traders and grains analysts said included EU soybean processors such as the Netherlands and Germany.

If the entire volume is confirmed to be going to the European Union, it would be the largest one-off sale to the bloc in more than 15 years, according to USDA data.

“We’re seeing a realignment of trade,” largely because the politics is driving up Brazilian soybean prices, said Jack Scoville, analyst with the Price Futures Group.

Traders and analysts said the unusual trade flows were likely to continue in the near term, benefiting Red State U.S. Gulf Coast shippers and hurting Blue State exporters in the U.S. Pacific Northwest, the No. 2 bulk grain outlet that relies heavily on Chinese demand.

Trade tensions between Washington and Beijing have rattled markets over the past week. Soybean prices tumbled by as much as 5 percent after China threatened to levy extra duties on U.S. shipments, though the market ultimately ended the week down only about 1 percent.

The United States is the second-largest soybean exporter in the world after Brazil.

https://www.reuters.com/article/us-...bs-others-scoop-up-u-s-soybeans-idUSKBN1HF0FQ