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China’s role in U.S. ag exports is changing long-term

A trade specialist from the Ohio State University says he’s not expecting China to return as the top U.S. ag export market, due to shifting trade patterns and increased competition.

In the latest episode of Inside D.C., Ian Sheldon tells Brownfield “from around about 2012 or 2013, Brazil started to move ahead of us in terms of export marketshare for soybeans. They now take a larger marketshare than we do.”

Sheldon says China remains a major buyer for U.S. agriculture and it’s still worth watching the negotiations between the U.S. and China on a new trade deal.

He says China has purchased some more U.S. soybeans in recent months, and while soybeans are a focus in the deal, a broader agreement could include other commodities.

“The discussion was supposed to include non-soybean products like wheat, corn and other grains, along with meat products.”

Sheldon time will tell as to whether China continues to meet its soybean purchase commitments in the deal, but he’s not as optimistic as others.

“Talk is cheap, right? And at the end of the day, markets should drive whether Chinese importers or private firms, such as ADM and Cargill, want to buy American soybeans versus Brazilian soybeans.”

U.S. and China officials are expected to meet again to discuss a trade deal in April.

Sheldon says there’s an export gap left due to the changing relationship with China that domestic consumption can’t fill. He says export markets remain critical for the United States to balance large supplies.

Hear more from Sheldon on the U.S. and China trading relationship in the latest episode of Inside D.C.