|
S Illinois | Growth in demand has been where the expansion of US exports has come from. Decreeing that China must buy 25% more US soybeans does not increase US exports. In the 16/17 marketing year, China took 36.1MMT of US soy. The US additionally sold 22.8MMT to other countries. If all of the sudden the US sold 45MMT to China that year, the US would have sold around 13.7MMT to other countries. It's not nearly as simple as saying that the US would have sold those extra beans to China and kept the non-China sales the same. Those assuming that we will all of the sudden ship just as many as before plus China's new demand will be sorely disappointed. This is also why the biggest drag on prices is not the lack of US to China sales, but rather the decline in overall worldwide demand. | |
|
Trade agreement doesn't officially begin until January 1?
