General Discussion

The longer that Chinese buyers turn their backs on U.S. suppliers, the lower the likelihood that they’ll see a return to large volume soybean sales to feed China’s market.

“The supply lines are going to get solidified, and once they solidify, China will be like ‘Why would I deal with an American supplier when I can still get the same material from Brazil or Argentina, and maybe it’s slightly more expensive, but I know those guys aren’t going to cut me off or screw with my shipments, unlike the U.S. government,’” Johnson said.

Beijing also has geostrategic reasons to leave behind U.S. soybean producers in favor of Latin American suppliers. China’s sharp increase in purchases of Brazilian soybeans coincides with sky-high political tensions between Washington and Brasilia…