By November, China has typically already committed to ~60% of its U.S. soybean purchases for the year. This late timing makes it difficult for U.S. farmers and exporters to recapture significant market share for the 2025-26 season, despite the political focus on the issue.
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Unlike the US's focus on quarterly results and election cycles, China's leadership operates on a civilizational timescale. From their perspective, the US is a recent phenomenon, and losing the US market is an acceptable short-term cost in a much longer game of survival and dominance. This fundamental difference in strategic thinking is often missed.
A record harvest of corn and soybeans, coupled with lower demand from China, created a surplus of turkey feed. This supply chain effect directly lowered input costs for farmers, resulting in a significant 14% Thanksgiving turkey price drop for end consumers.
Given that trade policy can shift unpredictably, rushing to execute multi-year supply chain changes is a high-risk move. According to Flexport's CEO, staying calm and doing nothing can be a radical but wise action until the policy environment stabilizes and provides more clarity.
The shutdown jeopardizes the release of the October WASDE report, a key source for U.S. crop yield data. Without this formative guidance, traders and analysts are "flying blind," increasing market uncertainty and the risk of price volatility at a critical time in the season.
Improved US-China trade relations are boosting Chinese purchases of American sorghum. This increased demand could make sorghum a more profitable crop for US farmers, potentially leading them to allocate acreage away from other crops like cotton during the 2026 planting season.
Despite reduced tariffs, China is unlikely to significantly increase US agricultural product purchases soon. Brazil's current soybean crop is priced much more competitively, making it the preferred origin. The real shift towards US products is expected in the 2026-27 season when pricing becomes more favorable.
Prospects use the new year as an excuse to delay decisions. During this idle time, priorities change, budgets are reallocated, and competitors gain access. Salespeople should abandon delusional optimism and treat these opportunities as dead, focusing instead on closing deals now.
Despite significant media attention, the Xi-Trump summit and other US diplomatic efforts in Asia had a muted impact on currency markets. The outcomes were either well-previewed by markets or structured to avoid immediate FX conversion flows, reminding traders that political headlines often don't translate into market events.
While the U.S. oscillates between trade policies with each new administration, China executes consistent long-term plans, like shifting to high-quality exports. This decisiveness has enabled China to find new global markets and achieve a record trade surplus, effectively outmaneuvering U.S. tactics.
The onset of a La Niña weather pattern is occurring unusually late in the year, coinciding directly with the planting season in Brazil and Argentina. This timing is critical because the associated dry conditions threaten yields in a region that China increasingly depends on for soybeans due to the US trade war.