China has been consistently importing U.S. soybeans 3 to 4 months ahead of the election. According to Dan Hueber of The Hueber Report, it isn’t clear what the nation will do with the imports, although there are some speculations.
On Market Rally Radio Thursday, Hueber told host Chip Flory they could have been stockpiling supply before the election for fear of what a Donald Trump presidency would bring, or if they are rebuilding their hog market. According to Hueber, China’s hog market has seen a 4 to 5 percent increase this year.
“Any increase is a huge stimulus on demand,” said Hueber.
In terms of markets, he said soybean meal has to be a leader since 80 percent of the value of soybeans are “derived” from the meal.
“Meal either drags us back to the downside or gives us those really powerful moves to the upside,” said Hueber.
Hear Flory’s concern on how a Trump administration could cause for importers to question the U.S.’s reliability of raw commodities and China’s self-sustainability on Market Rally above.