The USA continues to lose its share of the soyabean export market, according to a report by the US Department of Agriculture’s Economic Research Service (ERS) reported by World Grain.
“Over the last decade, the USA lost its position in the global wheat market as the European Union, Russia and Ukraine gained market shares,” the report said.
“Similarly, Brazil and Argentina continue to pose a challenge to US soyabean exports.”
The ERS noted that while US involvement in trade agreements, particularly with emerging markets, contributed to its export competitiveness, it did not establish any new free trade agreements (FTAs) from 2012 to 2020, potentially limiting export opportunities in some emerging markets, the 28 March report said.
Meanwhile, export competitors signed multiple FTAs during that same period.
Soyabeans continue to be the most valuable commodity exported by the USA and were valued at US$25.5bn in 2020 and US$27.4bn in 2021, according to the ERS.
China remained the largest market for US soyabeans, accounting for more than US$50bn in exports from 2016-2020.
The ERS noted that “a potential threat to US soyabean exports is the heavy dependence on China for purchase.”
The USA remains one of six major global wheat exporters, according to the report.
However, its market share of the wheat market has reduced since 2000 while drought and producer preference for higher value crops, such as corn and soyabeans, could reduce US wheat production and exports in the coming years, the report said.