- About us
- IBJ Awards
- Free Sample
- Contact us
Report outlines U.S. soybean export outlook
(Posted on 04/07/18)
A report from Rabobank released this month summarises the outlook for U.S. soybean exports, which it believes will continue to decline to China if tariffs take effect and remain in place. But the firm found U.S. soybean exports could increase to the European Union (EU).
President Donald Trump announced in June his intent to impose tariffs on $50 billion worth of goods from China and threatened to impose tariffs on $400 billion more. Meanwhile, China is promising to retaliate with its own tariffs, including an additional 25 percent tax on U.S. soybean imports.
“Given the risk of an additional 25 percent duty on U.S. soybeans into China, Chinese buyers have paid higher prices for non-U.S. origin soybeans,” according to a June Rabobank report. “If trade negotiations continue to distort Chinese imports of U.S. soybeans, other countries will benefit from lower U.S. soybean prices, which will be offset by higher South American soybean meal prices. China will also have to pay continued premiums for South American soybeans, pushing other destination markets to an extended U.S. export window, maybe closer to year-round.”
Meanwhile, a Bloomberg report cited more information from Rabobank International, which says the United States is likely to overtake Brazil as the biggest soybean seller to the European Union.
“It’s already happening,” said Pedro Dejneka, partner at Chicago-based MD Commodities, quoted in the article. “While China concentrates its purchases on Brazil, the rest of the world turns to the U.S.”
China is the world’s largest importer of soybeans, and the prospect of fewer shipments from the United States has boosted premiums for the commodity in the Brazilian market, the report explained. China could replace around 4 million metric tons of U.S. soybeans with Brazilian supplies in the fourth quarter if tariffs are implemented, according to Rabobank.
Rio Tinto will deploy the world’s first fully autonomous water trucks at its $2.6 billion Gudai... Read more
BHP has selected Amazon Web Services (AWS) and Microsoft as long-term cloud providers to help improve... Read more
New agreements will allow Kamoa Copper to export blister and concentrate copper locally through Lualaba... Read more
Trafigura Group Pte Ltd, one of the world’s leading independent commodity trading companies, has... Read more
The World Steel Association (worldsteel) has published the 2021 edition of World Steel in Figures. The... Read more
Hill Dickinson has further strengthened its leading commodities practice by hiring established professional... Read more
Rio Tinto has appointed Ben Wyatt as a non-executive director. Mr Wyatt, an Australian citizen, will... Read more
Rio Tinto and Comptech are partnering to bring a new generation of aluminium alloys to the market for... Read more
On welcome news of the Canadian Grain Commission’s fee reduction, effective August 1, 2021, Canada... Read more
Rusal, a leading aluminium producer, has announced that it is pursuing a demerger of its higher carbon... Read more