High quality U.S. Soy is always a good value, but especially right now.
While trade tensions between the United States and China have taken over the headlines, customers of U.S. soybeans might get a real bargain.
At this time of year, U.S. shipments are usually costlier than newly harvested soybeans shipped from Brazil. However, the accelerated purchasing of Brazilian beans by Chinese importers cautious of potentially paying steep tariffs on U.S. beans has sent Brazilian prices skyrocketing.
That makes U.S. Soy a great bargain.
On Friday, April 6, the U.S. Department of Agriculture (USDA) reported that 458,000 tons of U.S. soybeans were sold to undisclosed destinations. The next Monday, April 9, an additional 232,500 tons of U.S. soybeans were sold to undisclosed destinations, followed by another 279,000 tons on Tuesday, April 10. Traders and grains analysts said those destinations included EU soybean processors such as the Netherlands and Germany.
If this entire volume were confirmed to be heading to the European Union, it would be U.S. Soy’s largest single sale to Europe in more than 15 years. These buyers likely initially planned to use Brazilian origin at this time of year, but switched to U.S. beans when Brazil’s prices spiked.
We’re hearing from traders and analysts that some of these unusual trade flows are likely to continue in the near term as trade uncertainties drive up Brazilian soybean prices.
The U.S. Soy Advantage is alive and well:
- We have great exporters utilizing outstanding infrastructure to meet customers’ needs
- We have great farmers who produce their beans in a sustainable manner, which is verified by our tool, the U.S. Soy Sustainability Assurance Protocol (SSAP)
- We have documented evidence highlighting the amino acid concentration and oil purity advantages of U.S. Soy
While uncertainty and volatility is not unique in the commodity industry, we are proud of the consistency that our U.S. Soy industry provides – now is a great time for our customers all around the world to take advantage of that!
If the USSEC team can assist, please don’t hesitate to contact us!