China’s Ministry of Commerce announced in an overnight press briefing that China ’s import volumes in the second half of 2021 are expected to slow relative to record-breaking volumes posted the same time last year.
Li Xingqian, a Ministry of Commerce official, told reporters that the government expects that increasing rawmaterials costs and ongoing supplychain issues at export terminals will continue to reduce profit margins for shipping companies, which could impact freight costs and trade flows.
Specific details regarding the prospects for U.S. and China grain trade were not discussed.
However, the current grain market rally was fueled in large part by unprecedented Chinese demand.
Consequentially, a slowdown in those trade volumes could be a bearish boon for row crop farmers in the U.S. Heartland.