Brazil and the United States are the two largest exporters of soybeans accounting for over 80% of total annual global soybean export sales.
According to a report at Forbes, Brazil literally ran out of soybeans to sell last season; the U.S. seems to be headed down the very same path.
In October, Brazil, the world’s largest producer and exporter of soybeans, announced it had sold too many soybeans and would lift import restrictions in order to have enough domestic supply. Now the world’s second largest exporter, the United States, is running low on soybeans.
The USDA predicts the U.S. may actually have to follow Brazil’s lead and more than double the small volume of soybeans it usually imports prior to next season’s new harvest.
How did the two largest soybean exporters on the planet run so low on supplies? The simple answer is demand from China. China is again expected to break its own record for soybean imports this season, with the USDA projecting 100 MMT (million metric tons) of soybean imports and some private forecasters predicting 101 million or more.
Read the full report at Forbes.
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