close [X]

Lost Soybean Sales to China Continue to Climb

Market Intel / July 10, 2018

In May, we reported on accumulated losses of U.S. soybean sales to China that seemed to coincide with trade announcements. A lot has happened on the trade front over the last six weeks, so we wanted to check back in on 2017/2018 U.S. soybean sales. According to the latest USDA export sales data released on July 6, covering trade through June 28, total lost soybean sales have now exceeded 5 million metric tons. This is more than 2 million metric tons higher than cancellations the same point in the 2016/2017 marketing year and more than 1 million metric tons higher than the level of cancellations throughout the entire 2016/2017 marketing year. In the unlikely event that no more cancellations occur, and the U.S. ships the remaining 772 million metric tons in outstanding sales to China, U.S. soybean sales for the fully 2017/2018 marketing year will be more than 8.5 million metric tons below 2016/2017, a decline of more than 23 percent.

Contact:
Veronica Nigh
Economist
(202) 406-3622
veronican@fb.org
 

Share This Article

The share of household income spent on food is an indicator of national wellness and food security. In 1857, economist Ernst Engel posited that as incomes rise, households tend to spend a smaller percentage of their total income on food -- both at home and away from home. At the same time though, the total amount spent on food increases. Engel’s Law remains a consistent framework for looking at the broader implications of food expenditures and can be seen in the research and data coming from USDA and the Organization for Economic Cooperation and Development.

Full Article
Credit: Sgt. Mikki Sprenkle/Public Domain 

Following nearly two years of unfair retaliatory tariffs that have roiled U.S. commodity markets and disrupted supply chains, USDA recently signaled that the second of three rounds of Market Facilitation Program payments, i.e., payments that were tentatively to be paid in November 2019, will be available to producers in late November or early December. The first round of trade assistance, announced in July 2019, authorized up to $14.5 billion in direct payments to farmers who had been impacted by the tariffs (USDA Announces Details Behind the New Trade Aid Package). USDA data suggests that, so far, the department has sent $6.8 billion in payments to farmers.

Full Article