China A Major Player in Ag Markets Worldwide

A lot of the conversation around Chinese President Xi Jinping’s trip to the U.S. revolved around Russia, and air strikes in Syria, but it misses just how important that country is for agriculture markets.

USDA Outlook Board Chair Seth Meyer said they are a major player, importing the most U.S. ag of any country, most of it in soybeans. But that doesn’t mean they don’t impact other crops.

“Even if they’re not necessarily trading in the huge volumes that they are in soybeans, their internal policies have a big role in what we sell them and what global prices are.”

For example, the Chinese government has issued subsidies to their cotton growers which has meant massive Chinese stocks and lower global prices.

China is expected to buy $22 million worth of U.S. agriculture, or about 16 percent of all U.S. exports.