A major challenge this harvest season is grain storage capacity, along with reduced demand for soybeans.
Mike Steenhoek, Executive Director of the Soy Transportation Coalition, told Siouxland Public Media that some farmers may have to resort to storing soybeans on their own farms and that ground piles may become common at elevators and individual farms.
Steenhoek said that China is a unique customer because it has multiple uses for soybeans and soy products, including feeding livestock and cooking.
“We are having to move a lot of soybeans and soy products to other countries, and that has been successful. When you consider the fact that China imported more soybeans from the U.S. last year than any other of our international customers combined, you realize that there is only so much diversifying your customer base you can do to be successful,” said Steenhoek.
Steenhoek noted encouraging developments in domestic soybean processing to serve domestic markets.
Steenhoek also said farmers may have to store their grain for a longer period of time and that it will eventually find its way into the marketplace, whether it is exported to other countries, processed here in the United States, or goes into the livestock industry.
China was the biggest importer of U.S. soybeans last year, this year they stopped buying soybeans from the U.S. due to tariffs. Steenhoek said one of the hopes for next year is that China will resume importing soybeans.
