Global Soy Trade Has Turned ‘Upside Down’
In the wake of the U.S.-China trade war, global soybean trade has turned upside down. Argentina, the world’s third largest soybean producer, has been executing large purchases of U.S. supplies, lifting shipments to their highest level in 35 years.
In turn, Argentina, which has traditionally processed its beans into oil and meal before shipping to China, has begun shipping its raw beans instead as China’s massive demand has it sourcing its raw products from nations other than the U.S., with industry watchers forecasting that Argentina’s soybean exports could quadruple.
As a result, for the week ending November 8, 249,278 tons of U.S. soybeans are bound for Argentina - the highest weekly volume since the U.S. began collecting such data in 1983. And for the 2018/2019 season, U.S. soybean shipments to Argentina have topped 1 million tons, compared to zero the year before - much higher amounts than expected.