07 November 2023, 11:23 am 1 minute
Reuters was first to report China’s largest single-day soybean purchase this year, as logistical troubles in Brazil make U.S. soybeans more attractive to the world’s largest importer of the valuable cash crop. The report, citing traders, that Chinese importers bought around 10 cargoes of soybeans, or about 600,000 metric tons, for shipment from U.S. Gulf Coast and Pacific Northwest export terminals sent soybean future prices higher in overnight trading on Tuesday.
The sales would be a relief to U.S. farmers, who have seen Brazil dominate the global export market for soy as well as corn for longer than normal this year. If confirmed, Tuesday’s sales would be the largest single-day soybean purchases by the world’s top soy importer since late July, according to U.S. Department of Agriculture (USDA) daily sales data. High U.S. prices due to barge shipping disruptions and stiff export market competition from Brazil, which harvested a record soy crop this year, have hampered U.S. sales in the season so far. Confirmed sales to China as of late October were down 35% from a year ago, and sales to all destinations were down 28%. The USDA is currently projecting a 12% year-on-year export decline.
Topics of Interest: Deals
Type: Reuters Best
Sectors: Food & Beverage
Win Types: Speed
Story Types: Exclusive / Scoop
Media Types: Text
Customer Impact: Important Regional Story