Last week saw some positive, albeit limited news for U.S. soybean export potential. While Iowa Senator Chuck Grassley is pleased with positive movement, he thinks it can be better.
The European Union (EU) approved U.S. soybeans for use in renewable fuel production. This should mean increased shipments of U.S. soybeans to the EU. While Senator Grassley is pleased to see an increase, he still isn’t completely satisfied. Grassley feels the EU should open the doors for U.S. soybeans in food production as well.
The Senator is also encouraged by China’s plans to purchase more U.S. soybeans after talks last week. However, he reminds us it is nowhere near the market share we lost.
Grassley says it will be very easy for South America to take advantage of this situation. The Senator says if South America can establish an increased trade network to replace losses in U.S. soybean exports, it will be very difficult for the U.S. to regain those markets.
Grassley says we need to have certainty in trade. The Senator says we need to get the bleeding stopped before markets are damaged irreparably. He plans to continue to urge the Trump Administration to negotiate a proper trade agreement with China by the March 1st deadline.