Decreasing Demand for Soybeans in Indonesia Could Affect US, USDA Says
Indonesian palm oil exports and soybean imports are expected to decline due to weakening demand from soy-food producers and less demand in major export markets, including China and India, a U.S. Department of Agriculture Foreign Agricultural Service report released Aug.…
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5 said. Demand for palm oil imports is expected to particularly decrease in China as the country increases soybean imports for crushing, the report said. Less demand for soybean imports in Indonesia will likely affect the U.S., which is the largest supplier of soybeans to that country. “U.S. soybean shipments to Indonesia have declined by 14 percent to 1.4 million tons from October 2019 to May 2020, compared to same period last year,” the report said. Canada, however, has steadily increased soybean shipments to Indonesia in recent years, “more than doubling to 155,000 tons in 2019/20. The recent spike in shipments to Indonesia occur as Canada’s soybean exports to China, previously its largest market, have declined sharply.”