According to analysts and an export trader, Chinese importers yesterday bought a relatively small amount of soybeans for shipment in December and January from the US Gulf Coast and Brazilian ports.
The purchases of about 3 to 4 loads, or up to about 240,000 tons, came after a sharp drop in prices on Tuesday, when the CBoT's benchmark soybean futures fell nearly 2%.
Importers in China, the world's largest soybean buyer, bought more Brazilian soybean shipments than normal this year during the traditional US soybean export season in the fall, given high US prices and a stronger dollar.
China's confirmed US soybean purchases from this year's crop were approximately 19.7 million tons on November 18, compared with nearly 29.2 million tons at the same time last year, according to the latest data from the US Department of Agriculture.
"With the price drop we've had, they're trying to get more soybeans. Your crush margin is profitable," said Don Roose, president of US Commodities in West Des Moines, Iowa.
"They bought from South America and the US, but our sales window is closing, so we have to hurry.In February we are no longer the main exporter. It's starting to shift southwards pretty much. "America," he said.
China booked around 85% of its estimated soybean purchases in December, along with roughly half of its needs in January, a US export trader said.
Source
Hansa Terminhandel GmbH