The Deputy Secretary at the USDA says he’s confident China will continue to meet its purchase commitments made to the United States.
Stephen Vaden said recently that, “This year every indication that we have, whether it be data, whether it be the President’s recent trip to China, whether it be conversations USDA has with our Chinese counterparts, every point of indication we have indicates they’re going to meet that 25 million metric ton this year and going forward.”
Last November, U.S. officials said that China agreed to purchase 12 million metric tons of U.S. soybeans in the near-term, along with 25 million metric tons of soybeans each year through 2028. Earlier this year, U.S. officials said China would purchase an additional eight million metric tons of U.S. soybeans.
Vaden says he’s expecting future publicly reported information to validate that confidence throughout the growing season.
Beyond China’s soybean commitments, he says there’s optimism at USDA regarding demand for U.S. sorghum, hardwood, cotton, poultry and beef.
“China has agreed to purchase an additional $17 billion of American agricultural products on top, not including, but on top of what they agreed to do last year. So, this is a commitment that’s only deepening, and I look forward as our trade team works out the details of how and when that’s going to go forward this year and in future years.”
Vaden says China remains an important market for U.S. agriculture.
EDITOR’S TAKE:
We certainly trust that the Deputy Secretary’s assessment is accurate and true. That type of commitment would put China back on the list as the number one purchaser of U.S. soybeans. The challenge in recent years has been the volatility and uncertainty in China’s purchases, typically driven by political and retaliatory purposes. If these latest predictions come to fruition, U.S. farmers/ranchers will be much better off financially at the end of the year. This could be the light at the end of the tunnel.
This is why you put farmers and ranchers at or near the top of your customer prospect list. It is also why you keep your inventory on AgTruckTrader.com®! Farmers/ranchers purchase a lot of trucks and SUV’s every single year according to research data on their purchasing decisions.
