China changes buying tactics as U.S. grain run enters volatile stage
CoBank
China shook up the U.S. feed grain export market over the last year, purchasing massive quantities of U.S. soybeans, sorghum and corn. With the help of a favorable exchange rate, China increased its purchase from the U.S. to meet feed demand for its rising hog production and to offset reduced supply from Brazil. China’s accelerated demand for grains is expected to continue, although its purchasing patterns are shifting in response to U.S. grain market dynamics.
According to a new report from CoBank’s Knowledge Exchange, the outlook for continued U.S. grain exports to China remains strong, primarily due to its projected growth in pork production and steady demand for feed grains. However, the current U.S. grain run has entered a new phase marked by significant price volatility, and China is leveraging that volatility to its advantage.