A combine in Rippey, Iowa harvests soybeans in October 2019. Photo: Joe Raedle/Getty Images
Soybean reserves in the U.S. are anticipated to drop 25% within this next season as exports to China rebound, the Department of Agriculture announced at its annual outlook forum on Friday, Bloomberg reports.
The big picture: Soybean prices sunk to a 10-year low last year after the U.S.-China trade war escalated, at the time leaving little hope that China — the world's biggest soybean importer —would continue buying U.S. soybeans.
What they're saying: “Increasing global import demand, particularly for China, and a recovery in U.S. market share will support higher soybean exports following a sharp decline over the past two years,” the USDA said on Friday, per Bloomberg.
Yes, but: Corn inventories are now forecast to grow to roughly 2.6 billion bushels, or their highest point in three decades.
Go deeper: U.S. farmers fight to save Chinese soybean relationships