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Sutter: China soybean trade could level out

U.S. Soybean Export Council CEO Jim Sutter says trade between the U.S. and China could level out following recent trade talks, but it’s not a guarantee.

“One of the things we understand that has been agreed is that the tariffs will be kind of equalized between soybeans from all origins. So we’ll no longer be at this 10 percent duty disadvantage.”

Sutter says Brazil’s soybeans are cheaper than U.S. beans due to the tariffs, and price speaks to buyers.

“I don’t know a buyer anywhere in the world that doesn’t want the best deal possible.”

Sutter was in Beijing meeting with soybean buyers when the U.S. and China recently met to discuss trade, and he tells Brownfield “These buyers saying, we are anxious to be able to get U.S. soy again because in this past year they haven’t really been able to utilize U.S. soy because the only imports have been going to the state-owned enterprises, to COFCO and Sinograin. The private companies, the other independent crushers, haven’t had access to that.”

He says China’s new purchase commitments, if realized, would be extremely beneficial for many U.S. ag commodities, and he’s optimistic China will follow through.