U.S. Soybean Sales to China Slump Amid Trade Standoff

The trade deadlock between the U.S. and China is costing American soybean farmers billions, as Chinese buyers turn to Brazil and other South American suppliers. Around 7.4 million metric tons of primarily South American soybeans have already been secured by China for October, meeting 95% of their projected demand.

Historically, the U.S. would be the primary supplier for China during this period, shipping most of its soybeans before Brazil's harvest arrives. However, this year, U.S. shipments remain absent from Chinese bookings, reinforcing the competitive edge of South American producers amid ongoing trade tensions.

As the situation persists, U.S. soybean exporters are potentially facing losses between 14 million to 16 million tons by mid-November. Despite lower U.S. soybean prices, China's tariffs continue to raise costs, making it economically unviable for Chinese importers. Without resolution, these dynamics could majorly impact global soybean trade and U.S. export forecasts.