Yesterday, the Argentinian oil mill Vicentin SAIC bought another 120,000 tonnes of US soybeans. This is the largest purchase of US soybeans by Argentina for 20 years.
These extraordinary closings from yesterday and the day before yesterday over 240,000 tons led to rising prices at the CBoT in Chicago and sharp price falls in Argentina's cash market.
The price turbulence in the South American country, which has become the third largest soybean exporter in recent years, is the result of the worst dryness in 30 years.
Both financial statements are expected to be delivered in the financial year 2018/19, starting on 1 September.
Price volatility was triggered by China's announcement to impose 25% punitive tariffs on US soybean imports. In the first step, soybean prices on the CBoT fell by 5%. Brazilian soybean premiums soared, while US bean premiums plummeted. This made US soybeans so attractive to European buyers that they have now bought nearly 1 million tonnes of US beans. Now even an Argentine oil mill bought US beans.This led to rising prices on the CBoT and on the Argentine cash market to a price drop of 3.1%.
The Vicentine SAIC is the only Argentine oil mill that is capable of unloading large quantities of soybeans from incoming seagoing vessels. In fact, the company is one of the leading exporters of soybean oil and soybean meal with a market share of 15% or 4.8 million tonnes.
It is expected that more imports from the USA will be organized.
Text: HANSA Derivatives Trading GmbH /
