On Tuesday, prices of U.S. soybean futures rose to their highest levels since 2018 after the U.S. Department of Agriculture said that Chinese buyers purchased 664,000 tonnes, the largest daily total since July 22.
"It looks like the outlook demand for the next six months or so is pretty good, and so I would say U.S. farmers are feeling much more optimistic than they were say, a year or even six months ago," Sutter told CNBC's "Street Signs Asia" on Thursday.
He argued that China snapping up U.S. soybeans indicates that the phase one trade deal between the two countries is successful.China is committed to buying $12.5 billion of American agricultural goods in 2020 and another $19.5 billion in 2021. China is the world's largest importer of soybeans, importing 60% of the world's soybean exports.
"I continue to believe that the phase one agreement is very important and is being executed well," said Sutter.to fulfill its commitments in the phase one deal, he explained that is largely due to the perception that purchases would take off immediately after the deal was done. However, there were issues and details to be worked through and China is now actively buying soybeans at this time of the year on seasonal demand, said Sutter.African swine fever outbreak,"Now, as we get into the time of the year, when China is more typically purchasing soybeans from the northern hemisphere — the United States in particular — we are seeing them make significant purchases ...
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