CHICAGO, Oct 22 (Reuters): US soybean export premiums are at their highest in 14 months, as grain merchants race to ship out a record-large US harvest ahead of the US presidential election and fears of renewed trade tensions with top importer China, traders and analysts said.
Nearly 2.5 million metric tons of US soybeans were inspected for export last week, including almost 1.7 million tons bound for China, the most in a year, according to US Department of Agriculture data released on Monday.
But while this export flurry is a bright spot for US farmers coping with low prices and hefty supplies, sellers say such heightened export demand could be short lived - leaving the US with a glut of oilseeds at a time when prices are hovering near four-year lows.
Tariff threats from presidential hopeful Donald Trump's campaign speeches are prompting some Chinese importers to shun US shipments from January onward, traders and analysts said.
Instead, these buyers are booking Brazilian soy - and paying up to 40 cents a bushel more than they would in the United States in an earlier-than-normal seasonal shift that's shrinking the US export window.
"The Chinese don't know what final costs will be relative to tariffs. They are avoiding the United States from January forward," said Dan Basse, president of AgResource Co.
Basse said he expects 2024/25 US. exports to fall 75 million bushels short of the latest USDA forecast.
US exporters race to ship soybeans
FE Team | Published: October 23, 2024 21:50:07
US exporters race to ship soybeans
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