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A limited export window to China anticipated

A global grain and oilseed analyst says the U.S. soybean export window to China, the world’s top soybean importer, might narrow at a quicker pace this marketing year.

Brazil remains competitive on the global market and Stephen Nicholson says as the large soybean crop is planted, Brazilian farmers have a lot of old crop soybeans to market.

“The real has appreciated and farmers aren’t getting as much money in their pocket when they sell their soybeans. Basis in the interior has been horrible, it’s come back from the lows, but it’s not good and producers are behind on their marketing.”

In the United States, Nicholson says a strong dollar and the logistical challenges of moving crops down a low Mississippi River and through the Panama Canal could challenge moving commodities to China and other markets.

“Producers need to be aggressive and market the crop when they can.”

However, decent U.S. soybean demand remains in the near-term. The latest export sales report from USDA says soybeans continue to see week-to-week improvements.