BTMA-Soybean prices rose to a record high in 7 years, The U.S. takes the opportunity to raise prices for China.

China’s soybean imports are huge, and the US takes the opportunity to increase prices

According to the Sino-US Government Economic and Trade Agreement signed at the beginning of the year, China will purchase $80 billion U.S. agricultural products, and demand for soybean imports will become even stronger.Can be said to lead directly to the United States export soybean prices skyrocketed.

Can be said to lead directly to the United States export soybean prices skyrocketed.Indeed, during the epidemic crisis, China is gradually recovering, so we have a large demand for agricultural products. In addition, we also need more edible oil and feed. It is obvious that the price of soybean as the raw material of both will increase.

Among the world’s soybean exporters, China has a lot of options

Previously, when China was importing Brazilian soybeans, it met with soybean prices rises that China could not accept. So China chose the US and Argentina market. Although it is “business in business”, if the US wants to become a stable partner with China, such blind price raising is not conducive to the long-term cooperation between the two countries.

Moreover, the current situation of agricultural trade in the United States is not very good. According to statistics from the Department of Agriculture, agricultural debt in 2019 has reached 416 billion U.S. dollars. Therefore, the United States should be more cautious when exporting agricultural products. Don’t actually lose more profits just because you are greedy for temporary soybean prices gains.

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