A Chinese delegation travels to Iowa this week, in hopes of purchasing a record amount of soybeans.
U.S. Soybean Export Council (USSEC) Regional North Asia Director Paul Burke said the overall volume of soybeans to be purchased is up dramatically due to a scarce Argentinean soybean crop.
?In order to make up for that short crop, Chinese crushers needed to cover their needs by increasing their purchases of U.S. soy. That?s why we?re having a fantastic year. It?ll by the fourth year in a row of record U.S. soy exports to China. This has been a remarkable year,? Burke said.
China is the number one buyer of U.S. soybeans, purchasing 60% of U.S. soybeans exported each year. Burke said the purchase is important to the Chinese feed and crushing industry.
?They need these soybeans to in order to help them meet their consumer demand for vegetable oil and the feed industry?s demand for soybean meal,? Burke said. ?This is part of an overall, long-term purchase need for the Chinese feed and crushing industry.?
The exact volume of this year?s purchase will be revealed at the Soybean Trade Agreement Signing Ceremony at the Des Moines Embassy Club on Grand Avenue Thursday. Burke said the trade signing agreement is part of a 100-day negotiation on trade issues taking place between the U.S. and Chinese governments.
?The purchases are part of the Chinese governments intentions to show and demonstrate that they are purchasing U.S. agricultural products, and that China doesn?t just export things to the U.S., that they do actually import quite a bit,? Burke said.
Last year, a Chinese delegation purchased 9 million metric tons or 330 million bushels of U.S. soybeans, worth $4 billion. This year, the delegation also plans to purchase U.S. sorghum, pork and beef at the trade signing ceremony.
