With the U.S. and China trade war hitting soybeans heavy, exports took a volatile ride in 2019. As the last export numbers come in, one thing is certain, big purchases helped bolster demand as the year ended, giving hope for the suffering soybean industry. As we move through the marketing year, and with the new Phase 1 Trade Deal with China expected to be signed in a few weeks, purchases are expected to continue to grow. But with ASF (African Swine Fever) decimating Chinese hog herds, finding an equilibrium of demand and supply may take time and alter past trends that would be expected. Some estimate that more than half of all the pigs in China are now gone, which will have a dramatic impact on both global pork prices, and soybeans, a primary input in feed for hogs.

Leave a Reply

%d bloggers like this: