Alfalfa hay exports to China in September at 53,032 were the lowest in nearly three years and were 32 percent below September 2017. The tariffs imposed by China continue to put pressure on alfalfa hay shipments from the U.S. West Coast to China.

News reports from Argentina over the weekend stated that the U.S. and China called a truce in the trade war and now we will see how negotiations go in the coming months to resolve the dispute. Conversely, alfalfa hay exports to Saudi Arabia and the United Arab Emeritus (UAE) were up sharply in September. Larger alfalfa farms in Saudi Arabia will not be able to use water for irrigation starting in mid-December, according to sources, which has spurred more demand for West Coast alfalfa hay.

UAE buyers have been more active buying alfalfa hay from the West Coast recently. Chinese buyers have been outbidding UAE buyers on alfalfa hay in Spain and other areas of the world where UAE was buying alfalfa hay.

Seth Hoyt

Author of The Hoyt Report, providing hay market analysis and insight.