It seems like a broken record: soybean exports are sluggish and there’s the question if China will continue to buy more U.S. soybeans.
If China doesn’t buy from the U.S., Brazil and Argentina are two options. Paul Georgy, chairman of the board for Allendale, Inc., thinks yields in Brazil could be 3 to 10 percent higher than they were in 2017.
“A year ago, they were record yields and we have more planted acres this year, so the potential is there for a much bigger crop offsetting the Argentina crop,” he told AgDay host Clinton Griffiths.
Georgy expects strong yields in Brazil to possibly offset yield loss in Argentina, but some of the bulls think a 2 to 3 million metric is going to come off the U.S. ending stocks. He doesn’t expect that to be the case, citing the down protein quality in U.S. beans.
“China showed cancellations of sales and they moved those sales to Brazil,” he said. “Brazil is going to be marketing some of these beans.”
Hear Georgy’s full comments on AgDay above.