China buys at least 10 more cargoes of US soybeans, traders say
China has bought at least another 10 cargoes of US soybeans, three Asian traders said on Thursday, the latest in a flurry of purchases ahead of President Xi Jinping’s expected US visit next month. State-run buyer Sinograin bought 10 to 15 cargoes on Wednesday, the traders said. At least 10 cargoes were for October-November shipment, one trader said. The deals follow trade talks between Washington…
Recent reports indicate that China has acquired a further 10 shipments of American soybeans, according to three Asian traders on Thursday. This follows a series of purchases in anticipation of President Xi Jinping's upcoming visit to the United States next month. Sinograin, a state-run buyer, acquired 10 to 15 cargoes on Wednesday, with at least 10 shipments destined for the October-November delivery window, as one trader noted.
These transactions come after trade discussions between Washington and Beijing, in which China reportedly agreed to purchase 25 million tonnes of US soybeans annually and increase purchases of other American agricultural products, as the White House confirmed. To date, China has procured approximately 6 million tonnes for shipment to the US during the crop year commencing on September 1, according to a US industry source.
Mike McCranie, a farmer from South Dakota and chair of the US Soybean Export Council's board of directors, expressed optimism about China's adherence to its purchase commitment of 25 million tonnes during a conference in Chicago. "It's a positive sign that China will honor its commitment," McCranie stated. On Tuesday, Juan Luciano, CEO of Archer-Daniels-Midland, suggested that China is likely to meet the commitment and may also acquire shipments of US sorghum, barley, and other crops.
Importers have capitalized on a recent decline in American soybean prices, spurred by forecasts of better weather conditions in the US for the upcoming crop. Thursday saw soybean futures on the Chicago Board of Trade rebounding marginally after hitting a one-month low on Wednesday. The US Department of Agriculture reported in its daily data that exporters sold 122,000 tonnes of US soybeans to China for delivery under the September-starting crop year.
Exports must be reported to the USDA within 24 hours of reaching 100,000 tonnes. Sinograin, which oversees China's strategic reserves, has been auctioning imported soybeans to free up storage space for incoming US shipments. According to two traders, Sinograin sold roughly 67 percent of the 501,000 tonnes of imported soybeans offered at its second auction in recent weeks on Wednesday.
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
