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Post-Trade War Export Boom a Boon For U.S. Soybean Farmers

As temperatures cool from a trade war begun three years ago between the U.S. and China by the former U.S. administration, trade corrections are finally benefitting U.S. soybean farmers.

International shipments of soybeans and soy-based products during the 2020/2021 season reached 74.76 million tons - a new record, according to data from industry analysis completed by the U.S. Census Bureau.

During the trade war, U.S. exporters were forced to find new destination markets for their soybeans that included Egypt, Pakistan, and Mexico. Over time, these countries began boosting their purchases and expanding into buying more soybean meal and soybean oil for both animal feed and cooking purposes. Egypt for example, has more than doubled its purchases compared to before the trade war. At the same time, shipments to China have begun to recover to normal levels.

Meanwhile, U.S. exporters continue to target emerging markets where there is a booming population and growing demand for protein.

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