China's Energy Crunch Disrupts Oilseed Trade

By Keith Good

Farm Policy News

The USDA’s Economic Research Service (ERS) indicated in its October Oil Crops Outlook report that, “Brazil planted 38.6 million hectares of soybeans in the 2020/21 marketing year. With yields reaching all-time highs of 3.55 tons per hectare, Brazil produced a total of 137 million metric tons of soybeans. Despite high production numbers in the current marketing year, exports are lowered by 350,000 metric tons to 81.65 million metric tons as Brazil’s main trade partner, China, has slowed their soybean purchases. Brazil is expected to store these soybeans, raising October 1 beginning stocks for the 2021/22 marketing year to 26.95 million metric tons which is up 7 million metric tons from last year.”

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