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US soybean growers pivot to third-country sales and biofuels as China demand falls
Beijing is set to buy at least 25.0 million tonnes of US soybeans annually through 2028, but only about 12.0 million tonnes are on track for China this year.
US soybean growers are “adapting” to a sharp drop in China-bound exports by shifting sales to other foreign buyers and expanding demand tied to US biofuels, according to Scott Gerlt, chief economist at the American Soybean Association, as reported by SCMP Economy.
Gerlt said only slightly more than 12 million tonnes of last year’s crop are currently expected to reach China, down from the roughly double that level China typically imports to stay as the top overseas buyer for the US crop.
He attributed part of the change to increased sales to third countries, with another driver being growth in biofuel demand.
The association represents more than 500,000 soybean farmers across the US Midwest, covering a combined 83.6 million acres, Gerlt said, adding that growers have indicated little change in soybean production despite the export shift.