In the past few months, American farmers have deeply experienced the losses caused by the loss of the market. They are very much looking forward to regaining the favor of Chinese buyers. For American soybeans and other agricultural products that will be re-exported, American farmers are extremely cherished and are looking forward to Get an opportunity to make money early. "This is the beginning," said Monte Peterson, a North Dakota farmer in the United States. "We are grateful for any business we have achieved." We noticed that things may turn around again. The official website of China SINOGRAIN said on December 19 that the company recently purchased some soybeans from the United States in batches.
BWC Chinese website noted that Reuters reported on December 18th local time that four traders who understand the transaction situation and the US Soybean Export Association (USSEC) said that Chinese buyers returned to the US soybean market on Tuesday. A number of Chinese soybean buyers in China ordered more than 1.5 million tons of US soybeans in the second round of recent purchases.
A trader said that Chinese buyers bought 15 shipments, or about 900,000 tons, on Tuesday, with a delivery date of 1-3 months and a transaction value of more than $300 million. It is worth mentioning that although the amount of these soybeans is only a fraction of the 31.7 million tons of US soybeans imported by China last year, American farmers are also seeing some hope. Data show that in 2017, China's imports of US soybeans accounted for nearly 60% of US soybean exports, and the transaction volume reached US$12.25 billion.
Or just because of the patronage of Chinese buyers, the Chicago Board of Trade (CBOT) soybean futures rose about 0.3% on Tuesday. Soybean prices in the Pacific Northwest and US Gulf export terminals rose 1.5%. You know, this has been almost impossible in the past few months, when American farmers were almost in a rare predicament.
Data show that the Chicago Board of Trade (CBOT) soybean futures main contract price has been falling since March this year, once fell nearly 25%, close to a bushel of 8.4 US dollars, plummeted about 2.3 US dollars. Mississippi farmer Paul Dees said, "You may feel that it is only 1-2 dollars. But this is a matter of life and death. At the current price is a loss, can not support the family." The BWC Chinese Network Observer Group has mentioned that the trauma of US soybeans is due to the continued patronage of Chinese buyers. Reuters columnist Karen Braun has said that American farmers have previously underestimated the ability of large customers to develop new suppliers. Obviously, American farmers have long been ignorant of this.
The Hong Kong Economic Times website reported that the US soybean farmers had suffered heavy losses, and many farmers have ventured into the cowpeas, hoping to regain market share in the future. This once again proves that American farmers are highly dependent on the Chinese market, and they have been greatly affected by the loss of the market. After entering this fall, a large number of soybeans on many farms in the United States are stranded in the ground.
Coincidentally, a popular American song, "Old McDonald's Bankruptcy," almost sang the plight of American farmers in the past few months. "Old McDonald has a farm... However, the situation has changed recently, Old MacDonald Na's bankruptcy." In the 12 months to June of this year alone, 84 farms in the Midwestern United States covered by the ninth district of the United States Minneapolis Fed declared bankruptcy. According to the Fed report, this figure exceeded the highest record set after the financial crisis. We noticed that this scene was breaking the characteristics of American farm generation.
For example, Ohio-based soybean farmer Fred Jorde said that farmers in the Midwestern United States face "difficult moments" and "I almost lost $100,000." Obviously, recent signs on the market indicate that American farmers may usher in a new turn. It is almost certain that American farmers will become increasingly inseparable from the Chinese market and look forward to the Chinese market. This also further shows that in the world economy, you have me, I have you today, the economic model that breaks the law of globalization, is bound to be created, and American farmers may have to compromise with the market.
SINOGRAN who is Zhongke's big customer.They buy many optical sorter machine for soybeans from Zhongke.