Resumption of American soybean purchases by Chinese importers livens up the world market

19.12.2018

According to the Reuters news agency, China on Wednesday made the first significant purchase of American soybeans since the escalation of the trade conflict. This information pleased U.S. soybean growers, who harvested another bumper crop in 2018. 

The volume of purchases is said to be 1.5 MMT. Because of the trade disputes, Chinese importers actually stopped buying American soybeans and thereby provoked a drop in their Chicago price, reports UkrAgroConsult.

In December’s report, USDA experts left their estimate for 2018/19 soybean exports from the U.S. unchanged at 51.7 MMT (57.95 MMT last season), although shipments are far behind MY 2017/18. Actual exports between September 1 and November 29 were down 43% year-over-year, with contracted volumes being 17% lower than by the same date last year. Nevertheless, in view of successful talks between the U.S. and Chinese leaders, the market expects a substantial rise in supplies to China. As a result, soybean prices are on the rise. The nearby soybean futures contract has already gained 6% over the month, closing Wednesday’s trade at 920 cents/bushel.

Detailed analysis of the latest trends in oilseeds/vegoils/meals exports, palm oil imports, supply and demand balances with breakdown by crop as well as crop conditions and progress in planting/harvesting in the countries of Black Sea Region is available to subscribers for weekly market report "Black Sea Vegoils" by UkrAgroConsult.

If you need fast and reliable analytical tool, historical and current market data, daily updates on grain, oilseed and pulses markets, try out a new innovative tool for agri market participants – AgriSupp.com. We offer 2-week trial! Completely free!

 

UkrAgroConsult

 

Readers choice: TOP-5 articles of the month by UkrAgroConsult