- DTN Headline News
China Buys 4.8 MMT of Soybeans
Tuesday, September 16, 2014 5:04PM CDT

By Katie Micik
DTN Markets Editor

MILWAUKEE, Wis. (DTN) -- Chinese soybean crushing companies signed agreements to purchase 4.8 million metric tons of soybeans, or 176 million bushels, for a total of $2.3 billion dollars on Monday afternoon.

Ten Chinese crushing companies signed 21 purchasing contracts and agreements with eight U.S. grain companies during a contract signing ceremony that helped open the U.S. Soy Global Trade Exchange, a joint annual meeting of the U.S. Soybean Export Council and Midwest Shippers Association.

Ray Gaesser, president of the American Soybean Association, said this year's contract signing ceremony is about even with last year dollar-wise, but more tons were sold under the contracts because prices are lower than they were a year ago.

"China's our top export market," Gaesser told DTN. While soybean sales to China make up an important part of the market value U.S. farmers receive for their beans, the soybean signing ceremony is a small part of the bigger picture.

"These relationships are long term and have taken more than 30 years to develop. That takes trust," Gaesser said. Twenty years ago, U.S. farmers grew less than 2 billion bushels of soybeans. Now, they're expecting a harvest of 3.8 bb. In the same time frame, South American farmers increased production from around 1 bb to nearly 5 bb in the next crop year.

"We're growing -- more than doubling supply globally -- and demand keeps consuming them all. We give our customers the quality they want, and our supplies help China with their goals of food security," Gaesser said.

Jim Call, chairman of the United Soybean Board, said his grandfather started raising soybeans in 1947. When China first purchased beans from the U.S., Call said his grandfather thought it wouldn't affect the farm.

"But our farm now is directly affected by the trade we do at the end of the day. It is extremely important to us, and to my sons, and I'm sure to my grandchildren if they're farming (down the road)."

Phil Karsting, the administrator of USDA's Foreign Agriculture Service, said he's learned the importance of thanking customers for their business over the course of his career.

"I have two messages I want to deliver today. One is thank you, and the other is congratulations," Karsting said. "It marks another milestone in our trade relations. Our trade relationship is strong, and we are glad to celebrate this development today.

"To the producers in the room: Congratulations. Our producers have really stepped up to the plate to deliver reliable, high-quality products year after year after year."

A representative from China's Chamber of Commerce explained that he hopes the signing ceremony and conference this week will strengthen the two countries' partnership and friendship. With the help of both governments, industry organizations and grain companies, "China-U.S. soybean trade has expanded to a new level, and everyone in this room should be proud of the progress we have made so far, and we should also feel confident about the agreements we will make in the future."

Two other high-profile conferences will focus on export markets and relationships over the next six weeks, including one hosted by the U.S. Grains Council and another by HighQuest Partners.

Katie Micik can be reached at katie.micik@dtn.com

Follow Katie Micik on Twitter @KatieMDTN

(AG)


blog iconDTN Blogs & Forums
DTN Market Matters Blog
Katie Micik
Markets Editor
Monday, September 15, 2014 4:59PM CDT
Thursday, September 4, 2014 9:17PM CDT
Wednesday, August 27, 2014 10:19PM CDT
Technically Speaking
Darin Newsom
DTN Senior Analyst
Wednesday, September 17, 2014 1:49PM CDT
Sunday, September 14, 2014 3:09PM CDT
Saturday, September 13, 2014 4:54PM CDT
Fundamentally Speaking
Joel Karlin
DTN Contributing Analyst
Wednesday, September 17, 2014 2:58PM CDT
Monday, September 15, 2014 1:41PM CDT
Friday, September 12, 2014 12:26PM CDT
DTN Ag Policy Blog
Chris Clayton
DTN Ag Policy Editor
Thursday, September 18, 2014 4:02AM CDT
Tuesday, September 16, 2014 3:07AM CDT
Friday, September 12, 2014 11:16AM CDT
Minding Ag's Business
Marcia Taylor
DTN Executive Editor
Tuesday, September 16, 2014 4:05PM CDT
Tuesday, August 26, 2014 6:26PM CDT
Friday, August 22, 2014 8:34PM CDT
DTN Ag Weather Forum
Bryce Anderson
DTN Ag Meteorologist and DTN Analyst
Thursday, September 18, 2014 4:01PM CDT
Wednesday, September 17, 2014 8:57PM CDT
Tuesday, September 16, 2014 6:05PM CDT
Thursday, September 18, 2014 8:20PM CDT
Thursday, September 18, 2014 5:45PM CDT
Wednesday, September 17, 2014 8:02PM CDT
DTN Production Blog
Pam Smith
Crops Technology Editor
Thursday, September 4, 2014 11:19AM CDT
Thursday, August 28, 2014 7:40PM CDT
Monday, August 25, 2014 4:07PM CDT
Harrington's Sort & Cull
John Harrington
DTN Livestock Analyst
Friday, September 12, 2014 8:08PM CDT
Friday, August 22, 2014 6:26PM CDT
Friday, August 15, 2014 7:42PM CDT
South America Calling
Alastair Stewart
South America Correspondent
Thursday, September 18, 2014 6:22PM CDT
Thursday, September 18, 2014 6:22PM CDT
Wednesday, September 17, 2014 6:38PM CDT
An Urban’s Rural View
Urban Lehner
Editor Emeritus
Tuesday, September 16, 2014 10:32PM CDT
Thursday, September 11, 2014 12:51AM CDT
Wednesday, September 3, 2014 6:03PM CDT
Machinery Chatter
Jim Patrico
Progressive Farmer Senior Editor
Tuesday, September 16, 2014 4:32PM CDT
Wednesday, September 10, 2014 8:25PM CDT
Tuesday, August 26, 2014 3:32PM CDT
Canadian Markets
Cliff Jamieson
Canadian Grains Analyst
Thursday, September 18, 2014 10:34PM CDT
Wednesday, September 17, 2014 10:11PM CDT
Tuesday, September 16, 2014 10:05PM CDT
Editor’s Notebook
Greg D. Horstmeier
DTN Editor-in-Chief
Wednesday, September 17, 2014 8:32PM CDT
Friday, September 12, 2014 7:13PM CDT
Wednesday, August 27, 2014 6:39PM CDT
 
Copyright DTN. All rights reserved. Disclaimer.
Powered By DTN