Imports of soybeans from the United States by the European Union have increased by a massive 112% knocking its traditional source of Brazil into second place.
Soybeans from the US happen to be a very attractive feed option for European importers and users, thanks to their competitive prices. The latest EU data show that from July to December 2018 an increase of imports has been seen. The United States now supplies 75% of all EU soybeans imports (compared to 39% in 2017). This accounts for 5,181,833 tonnes (up with 112% compared to 2017). This puts the US well ahead of Brazil at 19%, the EU’s second main supplier, followed by Canada with just 2%, Ukraine, 1.6% and Paraguay, 1%.
From the US point of view, the EU accounts for 28% of soybean exports followed by Argentina at 10% and Mexico at 9%. This trade is part of the implementation of the Joint Statement agreed between Presidents Juncker and Trump in July 2018. In the Joint Statement, the 2 sides agreed to increase trade in several areas and products, notably soybeans. As a result, the European Commission is now regularly publishing figures on EU imports.
Biofuel fuels more imports
European imports of US soybeans are bound to increase even further, following the decision by the European Commission to launch the process for authorising the use of US soybeans for biofuels. According to the Commission’s assessment, the US Soybean Sustainability Assurance Protocol submitted by US soy exporters meets the mandatory sustainability requirements of EU legislation for their use in biofuels.