State Reserves Still Buying Soybeans (Part 2)

In other mentionable news, foreign crushers are still looking for creative ways to circumvent the government ruling about adding additional capacity. Most of this “foreign” owned capacity strictly runs imported beans and with the population’s growing interest in eating more meat the policy runs counterproductive to China’s long term interests of having a greater control over their food supply. For what it’s worth, the country will never be able to grow enough soybeans for the crush capacity. More likely, China will continue to adroitly play off the US against its main competitors of Brazil and Argentina. At the same time, crushers in China—both foreign and Chinese owned—admit while they may have other issues with the US, what they don’t question is whether the ships will stop loading tomorrow. The same can not be said for Brazil or Argentina.