Two cargo vessels were headed toward grain port terminals earlier this week near New Orleans to load with what will be the first U.S. soybean shipments to China since May. A third vessel is moved toward a Texas Gulf Coast terminal to be loaded with U.S. sorghum bound for China, marking the first American shipment of the feed grain since mid-March.
“U.S. farmers and grain traders have been awaiting shipments to China to resume after Beijing shunned U.S. crops for months due to a trade war with Washington, costing U.S. farmers billions on lost trade,” Reuters reported.
China booked nearly 2 million metric tons of U.S. soybeans and a smaller volume of wheat following a late-October meeting between President Donald Trump and Chinese President Xi Jinping in South Korea. During that meeting, the White House said China agreed to buy 12 million tons of soybeans before the end of the year, though China has not officially confirmed the deal, adding further uncertainty to already volatile grain markets.
According to the shipping data, the vessel Ocean Harvest is scheduled to arrive at Cargill’s Reserve, Louisiana, terminal, while the Tokugawa is expected this week at Zen-Noh Grain’s facility in Convent, Louisiana. A third vessel, the Bungo Queen, is headed for the Archer Daniels Midland terminal in Corpus Christi, Texas, where it will be loaded with sorghum.
Agriculture Secretary Brooke Rollins said on CNBC that details of an aid package for farmers are nearly finalized.
“Yes, we are looking at the aid right now,” Rollins said. “We have always said it is to solve for or mitigate anything under these new trade negotiations. Everyday that changes, and that’s what we’re working on. So, we’ll have an announcement probably in the next week or two on what that’s going to look like.”
Rollins also emphasized that China has begun purchasing U.S. soybeans again.
“They’ve already put in a purchase order. We’ve already started shipping soybeans their way,” she said, before adding, “We’re selling a lot more soybeans right now than we were a couple of months ago.” Recent U.S. Department of Agriculture export data has lagged because of the weeks-long government shutdown.
Administration officials have said that China agreed to buy 12 million metric tons of soybeans this year and 25 million metric tons annually over the next three years.
“We have every indication they will continue to buy soybeans, sorghum, etc.,” Rollins said, while also stressing the importance of expanding into markets beyond China. “We can’t just be so reliant as Americans producing American products on one country — a foreign adversary.”
