United States soybeans exports soared, with the help of neighboring countries.
A market strategist overviews this past week’s sales below.
AUDIO: Brian Grossman, Zaner Ag Hedge
The U.S. Department of Agriculture on Thursday released its weekly Export Sales report. Zaner Ag Hedge market strategist Brian Grossman says U.S. soybean exports saw significant growth this past week.
“Mexico had a record purchase during the last weekly export period. Sales came in at 1.5 million metric tonnes, a big push, (with) 720,000 getting exported. But, we’re still about 900,000 behind last year at this time. A good game of catch up, but we have more (to do),” Grossman said.
Grossman believes the U.S.-Mexico-Canada Agreement (USMCA) influenced recent sales.
“Getting the trade tension cleared up, getting us back on good relations and having a laid out plan as to how we’re going to proceed made Mexico feel much more comfortable (to) where they can come in and make such a purchase,” Grossman said.
Other countries also expressed interest in United States soybeans. Grossman says South America continues to purchase U.S. beans, mark them up and resell them to China.
“The pattern is still holding the same. They are buying our soybeans, using them domestically, and taking their domestic soybeans and shipping them to China. (I) have not heard any kind of reaction from China about that,” Grossman said. “It might be playing into their favor as well. Ultimately, China isn’t buying directly from us and still getting beans.”
China is not coming directly to the United States to make purchases. Grossman, however, says “any kind of demand is positive.”
“Any kind of demand is going to be positive, even if we put it on a boat and sank it in the middle of the Atlantic,” Grossman said. “As long as we can get some of these bushels burnt up, it’ll be good.”