NDSU Extension crops economist Frayne Olson isn’t surprised at the seasonal purchases from China, but these purchases are lasting longer than expected. “There are underlying fundamentals of supply and demand conditions to China driving that. Feed demand from China’s livestock sector seems strong. Right now, the U.S. is the only place you can go to get large volumes of corn and soybeans. We’re positioned well for the next few months.” Given Brazil’s supplies from last year, the country’s export sales may have been more aggressive than usual. “It looks like the actual domestic supplies of soybeans are very tight right now, but the other concerns are what’s happening with the weather.” Olson says it’s too early to say Brazil’s crop is in trouble, but it is a developing story. Olson will be part of the NDSU State of the Economy Conference happening this week.
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