Soybean Exports To China Surge 472%, 2 Years After Falling To Zero
12.11.2020 (www.forbes.com) - U.S. exports of soybeans to China, which took a beating during height of the trade war, are at their highest monthly total in almost three years, according to the latest monthly data from the U.S. Census Bureau.
Soybeans became something of a poster child for the impact of the trade war on U.S. exporters, as China retaliated for sweeping and broad tariffs from the Trump Administration on U.S. imports with surgical tariffs on U.S. exports.
Both 2018, when President Trump launched the trade war, and 2019 were lost years for U.S. exports of soybeans to China. Prior to the trade war, it had been a buyer of a majority of U.S. exports, largely used as feed for its pigs.
In September 2020, according to the latest available data, soybeans led the charge of a host of rapidly-growing U.S. exports.
Overall, U.S. exports to China were up 34% when compared to the previous September. U.S. exports to the world in the same time period? Down 9.46%.
In September, the first of three months important to soybean exporters, total exports were worth $1.93 billion, an increase of 472% from September of 2019, when the total was $337.10 million. In September 2018, the value of U.S. exports had dropped to zero.
The highest previous total was in November 2017. November is, in fact, the third important month in the U.S. season, before buyers look to Brazil and the Southern Hemisphere for their soybeans. October is the most important in the United States. Data for October will be released in December.
China has also reopened the spigot on U.S. exports of oil, another, if less-prominent poster child for the retaliatory strike against the United States.
In a similar, if not as demonstrative a fashion, oil exports in September were up 116% when compared to the previous September. As with soybeans, U.S. oil exports to China had fallen to zero two years prior, in 2018, the second of three consecutive months at that level.
In September, oil trailed only soybeans as a leading export to China, totaling $884.76 million.
Combined, the two accounted for more than 24% of all U.S. exports to China in September.
In fact, oil exports to China have been strong since May — the worst month for U.S. trade with the world overall, down just under 30% — increasing from $102.91 million in April to $1.06 billion in May. The total topped $700 million the next three months, until the September total topped $800 million.
September was also a good month for U.S. exports to China of petroleum gases like LNG, which increased 1,520% over the previous September to $216.47 million, the highest total since March of 2018.
It was a good month for U.S. exports of corn, up 1,270% from the previous September, to $168.81 million. Cotton exports to China were up 389%.
Computer chips and the machinery used to make semiconductors also had strong months but those two export categories have been strong for many months.