The state-owned grain warehouse in China Sinograin has now allocated 500,000 tons of soybeans from the reserves to the state-owned grain trader COFCO.
The decision was made after deliveries from Brazil, China's largest soybean supplier, were delayed. Some oil mills in China already had to restrict their processing because there was not enough raw material available.
The outsourcing from the state inventories should take place in the coming weeks.
This is the second time COFCO has received 500,000 tons of soybeans from its reserves this year. These allocations are intended to overcome supply shortages. An impact on the market is not expected.
Currently, soybean stocks in Chinese government warehouses are estimated at 3.49 million tons. This is an extremely low figure for the end of March. The soybean meal reserves are stated at 177,000 tons. As little as not since June 2011.
Source
Hansa Terminhandel GmbH
