World demand for U.S. soybeans remains strong and China still needs American soybeans, even if at reduced volumes in a trade war with the U.S., an LSU AgCenter report says, but depressed prices already have wiped out profits for many Louisiana soybean farmers, our media partners at The Advocate report.
While hitting a positive note on demand, the report says that further reductions in U.S. soybean imports by China are likely if the trade war is prolonged and points out that declining soybean exports would impact Louisiana ports. The report also raises an issue of Chinese rice being sold to Puerto Rico in recent months, although American rice cannot be sold to China, which farmers say is unfair, the newspaper reports.
“There are, as yet, no signs of slowing global demand for U.S. soybeans, which is positive,” the report said. “Sales outside of China are looking pretty good right now,” said LSU AgCenter economist Mike Deliberto, who co-wrote the report with AgCenter economist Kurt Guidry and AgCenter research associate Brian Hilbun.
Lower soybean prices, partially resulting from Chinese tariffs, have contributed to an increase in soybean imports by the European Union from the U.S., the Advocate reports.
To read the whole story, click here.