China’s Insatiable Soybean Hunger Eats Into Record U.S. Crop
- Production seen at all-time high of 3.95 billion bushels
- Inventories still poised to decline for first time in years
Soybeans are harvested in Illinois. Soybeans are used to make everything from animal feed to cooking oil, soy sauce and tofu. Since 2005, China’s imports of the commodity have more than tripled, and it now buys more than 60 percent of the world’s exports.
Photographer: Daniel Acker/BloombergThis article is for subscribers only.
U.S. farmers just can’t seem to grow enough soybeans to satisfy China.
For the third year in a row, U.S production is expected to set a record, the best such string since 1979. Yet, with output dropping elsewhere, a flurry of demand from China and other importers is eating away at stockpiles. The result: For the first time in three years, domestic inventories are poised to drop below the previous season, according to analysts surveyed by Bloomberg.