The surprise purchase of 120,000 tonnes of US soybeans by Argentine traders has been supporting CBoT soybean prices since yesterday. The front month is trading near its monthly high.
Traders on the international oilseed market estimate that Argentina could buy 500,000 to 1 million tonnes of US beans. This purchase from the USA is already exceptional, while from the neighboring country Paraguay, Argentina imports constantly.
Argentina needs these soybeans in October, when the local harvest is not yet available to the oil mills. Thus, existing delivery obligations for soybean meal and soybean oil can be ensured.
The Argentine oil mills already have a poor utilization of their processing capacity anyway. This year, after the drought, it will probably get worse.
European traders have also been buying large quantities of US soybeans over the last few days because Brazilian beans have high premiums, as China wants to buy oilseed in Brazil in the coming months.
This led to the Paris Matif that the rape futures prices declined while the CBoT courses for soybeansrose.
Text: HANSA Derivatives Trading GmbH /
