China trade action on soybeans could leave them ‘in a pickle’

Business


Sorghum tends to be a cheaper feed alternative to corn, but Beijing’s action effectively shut the door to American producers. In fact, American sorghum destined for China is now in limbo.

“Our global staff is now focused on finding homes for the substantial amount of U.S. sorghum that is in transit to China now or has already been sold but not shipped, as well as new crop that will be harvested in the coming months,” the U.S. Grains Council said in a statement.

Mexico has traditionally been the second-largest buyer of U.S. sorghum after China. But Japan has come in to purchase some supplies and the EU is another option.

For China, the tariff situation has made Australian sorghum more attractive. Even so, Reuters reported Wednesday that prices for cargoes of Australian sorghum were up after the anti-dumping duties were slapped on the U.S. grain. Australian prices are getting support as a result of a smaller crop, too.

“The Chinese need to satisfy their animal feed uses,” Reilly said. “They imported it because it was a cheap product. So now they’re forced to go out and buy more expensive feed from other countries or crush more soybeans and rapeseeds to get to more meal.”



Source link

Products You May Like

Articles You May Like

Nordstrom’s post-earnings sell-off was ‘overdone,’ buy for its digital strategy, Deutsche Bank says
Cooperman says FANG stock valuations are ‘reasonable’ except for Amazon
Here are 5 favorite stock ideas from UBS — including Citigroup
Is the day of reckoning coming for China’s corporate bond market
United reaches ‘resolution’ with owners of dog that died in overhead bin

Leave a Reply

Your email address will not be published. Required fields are marked *