"There is No Trade Deal" - China Buys Only 3% of US Soybean "Commitments"
Joe's Premium Subscription: www.standardgrain.comGrain Markets and Other Stuff Links-Apple PodcastsSpotifyTikTokYouTubeFutures and options trading involves risk of loss and is not suitable for everyone.🇨🇳 China Falls Far Short of US Soybean TargetsConcerns are growing over China’s commitment to purchase US soybeans. USDA data released Friday showed that China has purchased just 332,000mt of US soybeans since the recently negotiated trade truce—less than 3% of the 12mmt China was reported to have agreed to buy by January. Officials also suggested China would purchase 25mmt annually for the next three years, but there’s little evidence of follow-through.With 31 business days left in 2025, China would need to average 376,387mt per day (about 14 million bushels daily) to meet the target. For now, China has little incentive to buy US soybeans because Brazil and South America are offering cheaper, abundant supplies. Even so, President Trump has said Chinese officials assured him that “much larger” purchases are coming.📊 USDA Report: Bearish Corn, Softer Soybean OutlookFriday’s USDA report carried a bearish tone for corn. USDA cut the national corn yield to 186 bpa and production to 16.75B bu, but trade expected even lower. The average pre-report guess was 184 bpa and 16.56B bu.Soybean yield was trimmed to 53 bpa, with production at 4.25B bu, both below expectations. Despite the new US–China trade truce, USDA reduced its soybean export forecast to 1.6B bu. The agency also noted that several normal data sources were unavailable, raising concerns about data quality and reliability.🧪 Tariffs Removed on Fertilizer ProductsPresident Trump signed an executive order Friday removing reciprocal tariffs on several agricultural inputs, including DAP, MAP, and potash. The American Soybean Association welcomed the move, expecting lower fertilizer costs for farmers. Critics counter that the rollback effectively admits that prior tariffs raised consumer and producer costs. The administration maintains the tariffs improved America’s economic leverage.🇧🇷 Brazil Weather: Spotty Rain, Slow Soybean PlantingInconsistent rainfall continues to slow Brazil’s planting pace. AgRural estimated soybean planting at 71%, behind 80% during the same week last year. CropProphet data shows key Brazilian soybean areas received 82% of normal rainfall over the past two weeks, with Mato Grosso at 77%.🥩 Tariff Changes for Food ProductsTrump also reduced tariffs on certain food products not grown in the US, including beef. The order removes the 10% tariff imposed on Brazilian beef last April but leaves the existing 40% tariff (from July) and 26.4% over-quota tariff in place—meaning Brazilian beef still faces a combined 66.4% rate. The policy shift has introduced uncertainty into cattle markets and weighed on prices.
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