As soybean producers begin harvesting what is expected to be a bumper crop, many will look to stash their beans in hopes of riding out the trade conflict between the U.S. and China, according to the chief executive of Chesterfield-based agribusiness giant Bunge.
“Anybody who can store will do it,” Bunge CEO Soren Schroder said at a conference Thursday.
However, Schroder questioned the wisdom of stockpiling crops, because of uncertainty over how long the trade dispute will last.
U.S. soybean producers have seen demand from China plummet since July, when the country enacted counter-tariffs against American soybeans.
Others at the conference said stockpiling has already started, and that there’s a race underway to provide storage for the crops.
Schroder said U.S. growers are facing increased risk of a lengthy trade dispute. If the tariffs drag on, global trade flows may change, leaving some American producers without access to the valuable Chinese market.
Read more: Bloomberg