If China isn’t buying our beans, where are they getting them? Also, who is buying our beans, and what are they doing with them?
This is the time of the year when South American beans are historically spoken for and China normally switches its purchases of soybeans to the United States. With trade difficulties between the two economic giants, it isn’t happening. So where are they getting their beans from? Purdue Ag Economist Chris Hurt says China may still be getting U.S. origin beans through other countries.
Hurt says while China claims they will cut back on soybean usage during the trade war, they may still be getting attractive pricing from third-party sellers. Bean prices are low and the opportunity to take advantage of a bad trade situation is too appealing for smaller countries to ignore.
It seems China’s demand for soybeans is just too great to simply be cut back, and there is a chance for other countries to make a quick profit on a trade war.