Global demand for U.S. soybeans has fallen sharply as international buyers remain discouraged by the strong dollar, slowing economic growth, and uncertainty over the direction of U.S. trade policy in an election year.
Export sales of new-crop soybeans are historically low as the 2024-2025 marketing year begins on September 1. A new report says tailwinds could emerge to rejuvenate demand for U.S. soybeans in the upcoming marketing year.
CoBank’s Knowledge Exchange issued a brief saying the pace of early season soybean export sales historically has a low correlation with the final marketing year export numbers. With a record U.S. soybean harvest expected this fall, continued weakness in prices will likely attract new export demand.
Factors that could increase soybean exports could include a smaller-than-expected South American soybean harvest, a bump in EU demand for soybeans from non-forested acreage, falling U.S. interest rates, and a Chinese economic recovery that could fuel higher demand.
(From the National Association of Farm Broadcasters)