"Caleb Ragland, a Kentucky farmer and president of the American Soybean Association, is warning of an agricultural crisis as China has placed zero soybean orders for the upcoming harvest. It's a departure from typical patterns, where 25% of the U.S. crop goes to China. With prices 40% below three-year highs and production costs rising, hundreds of thousands of farmers face losses unless there's a trade resolution between the two countries."
"The absence of Chinese orders represents a dramatic departure from normal trading patterns. China typically accounted for over 25% of total U.S. soybean purchases, with roughly one-third of annual sales to the country normally booked by this point in the season. This translates to approximately 8%-9% of the entire U.S. crop that would typically be sold to China by now currently sitting at zero."
China placed zero soybean orders for the upcoming U.S. harvest, a sharp departure from historic patterns. Historically, China purchased over 25% of the U.S. soybean crop and typically books roughly one-third of annual sales by this point in the season. About 50% of U.S. soybeans are exported and China accounts for around a quarter of total demand. Soybean prices are about 40% below levels from three years ago while production costs and interest rates have risen, squeezing farmer margins. Approximately 500,000 soybean growers face significant financial risk, with hundreds of thousands likely to incur losses absent a trade resolution.
Read at Fortune
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