Tag Archives: soybeans

Chinese buy cheaper Brazilian soybeans

Posted on November 3, 2025 by | Leave a comment

The deal made with China and the US over trade included soybean purchases from the US. However it seems to have handed Chinese businesses an advantage in negotiating with Brazilian shippers of soybeans. Brazilian export prices eased up as a result of the announcement, providing an opening for large purchases from Brazil.

The so-called US-China agreement on soybeans has yet to be confirmed by the Chinese side, so we still don’t know if it’s real. But the leverage for China over Brazil’s soybean producers has increased for real, and will for a while. This may be a much larger advantage for China as a whole than decreasing tariffs for US soybeans later on will be.

Stockpiles of soybeans are growing in the US as the harvest ends, with many unsold beans. The door to China trade may not come quick enough for many farmers, causing a need to store longer. Chinese soybean consumers and may get a better deal from both parties.

Clever negotiating.

Reuters

https://gcaptain.com/chinese-buyers-purchase-brazilian-soybeans-as-prices-ease-over-us-china-trade-thaw/

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Midwest soybean farmers to help pay for Pacific Northwest export terminal; rail service is risky for harvest this year.

Posted on September 2, 2022 by | 1 comment

Soybean exports are one of the US major sources of export revenue. China is the biggest consumer of soybeans that are exported, about half the US crop. The US competes with Brazil for the Far East soybean market.

Most soybeans to China are for pig feed. However, they can be used to produce biofuel as well.

The new port, in Aberdeen, WA, near Seattle and Tacoma, will export soybean meal. Six state Soybean Associations will chip in to cover the cost, along with the Soy Transportation Coalition. They’ll contribute $900K of the cost.

The terminal will have rail service, involving an interchange between the BNSF and UP main lines, which are predominant in service to Midwest farmers and their elevators, and the Puget Sound and Pacific line, which goes right to the port.

Like the agricultural shipping terminal near Oakland, CA, this facility ought to be of great value in exporting soybean products.

Elsewhere, corn farmers in the US Midwest are worried that railroad inefficiency and poor reliability will prevent grain exports from being shipped as the harvest comes on. A good summary of the situation is in the second article.

Many elevators rely on rail transport to get their grain to a port for export. Some can use barges down the Mississippi, but others, in locations more than 200 mi. from a Mississippi port, use rail at local sidings at elevators. Railroads will need to up their game to support the US export market for agricultural products.

Joanna Marsh Thursday, September 1, 2022

Midwest soybean farmers to help pay for Pacific Northwest export terminal – FreightWaves

 Joanna Marsh Friday, September 2, 2022

Grain shippers eye hiccups on rail network

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Containerized soybean exports spike

Posted on August 31, 2020 by | 1 comment

There are suddenly more exports of soybeans to China in containers. It’s earlier than usual, and more of them. Over several years now, containerized exports of soybeans are rising, but suddenly it’s faster. A Taiwanese source said that “it’s more competitive than bulk” right now. Taiwan seems to be the main purchaser.

There are a few reasons why containers might be better for soybeans. First, you can trace the source much more closely than bulk. For customers who care, this may be a big deal. Second, the quality may be controlled better. In bulk vessels the beans are mixed with other lots, and even when an attempt is made (usually with a tarp or other barrier) to keep beans from two sources separate, some may escape the barrier. A third reason is ease of off-ship handling in areas where there aren’t good bulk unloading and storage facilities. Many remote regions can handle containers, load right on a truck, and transport inland to a distant point, when it might be difficult with bulk beans. And of course, it is a product that can be loaded for reverse travel for containers, to get them where they will be needed next.

I think in general we would expect bulk beans to be cheaper, because according to the article, the containers hold 20-22 metric tons of beans whereas bulk lots tend to run to 60,000 metric tons. However, it is nice to see that the niche is growing.

Chris Clott and I wrote a paper on this some years ago: Clott, Christopher B., Bruce Hartman, Elizabeth Ogard, and Althea Gatto. (2014). “Container Repositioning and Agricultural Commodities: Shipping Soybeans by Container from US Hinterland to Overseas Markets”.  Research in Transportation and Business Management. DOI: 10.1016/j.rtbm.2014.10.006.

https://www.spglobal.com/platts/en/market-insights/latest-news/shipping/082820-containerized-soybean-exports-from-us-to-asia-spike-long-term-opportunity-seen

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