The US soybean market has shown signs of recovery in recent months. Prices have rebounded from the lows seen last year, and this is due to several key factors.
Strong domestic demand has contributed to the recovery. The US livestock sector has increased its use of soybeans and soybean meal, partly because of a growing preference for high-protein feed that includes soybean meal.
“We know foreign #soybean producers in Brazil and other countries are expecting abundant crops this year and are primed to meet any demand stemming from a renewed U.S.-China #tradewar,” ASA President Caleb Ragland (KY) in Investigate Midwest: https://t.co/XjMJIWFqX7 #AgPolicy
— American Soybean Association (@ASA_Soybeans) April 5, 2025
Favorable weather conditions have also helped. Central soybean-producing states like Iowa, Illinois, and Indiana have reported above-average crop yields, stabilizing the supply of soybeans.
📉New-crop CBOT bean-corn ratio plunged to a #corn-favoring 2.2 on Friday as China slapped U.S. goods with counter-tariffs.
Although China has recently reduced reliance on U.S. #soybeans, USA exported 20 mmt to China btwn Sep-Feb, some 53% of all shipments. China still matters. pic.twitter.com/w6AVngG0ip
— Karen Braun (@kannbwx) April 4, 2025
China tariffs affect soybean recovery
Renewed trade discussions with key international partners have also been encouraging. After previous trade tensions, there seems to be a positive trend towards more US soybean exports.
This is boosting market confidence. Experts think the US soybean market could continue rising if these trends continue. However, they also warn that international trade policies, weather, and the US economy will be important in determining future soybean prices.
In my latest piece for @Bachart and @BarchartAg I address the question: Has the US #Soybean market been made great again? https://t.co/WolxFBD18a
— Darin Newsom (@DarinNewsom) April 4, 2025
The agricultural sector is optimistic but cautious. Agricultural commodities can be unpredictable, and many outside factors can impact prices.
As the market continues to change, those involved are watching developments closely. They hope to take advantage of favorable trends while managing risks from potential downturns.
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