After CBoT soybean prices reached their six-week high yesterday, the future is trading slightly weaker this morning. Market participants expect China to accelerate its soybean purchases in the US, knowing that demand is likely to decline due to the rampant African swine fever there.
China's commitments to buy USD 40 to 50 billion of agricultural goods in the US agreed in "Phase 1" are due to be signed in January. Soybeans in particular are likely to benefit from this.
Yesterday, the USDA reported that exporters had sold 126,000 tons of soybeans to buyers in China for delivery in the 2019/20 marketing year. It was also announced that 220,500 tons of soybeans will be shipped to the Netherlands and Saudi Arabia.
Source
HANSA Terminhandel
