China has purchased 1.5M-2M metric tons of U.S. soybeans over 24 hours, with shipments expected to occur sometime during Q1, the U.S. Soybean Export Council says, with more Chinese purchases likely still ahead.
The sale would confirm earlier reports of the first significant purchase U.S. soybean purchase in more than six months from China, the world's top soybean importer.
But March soybean futures fell as much as 1.6% in today's trade to ~$9.18 per bushel, the biggest intra-day drop in a week, after prices had gained in the previous two days in anticipation of Chinese purchases.
The market is looking for much bigger sales to China to put a dent in the huge stockpile in U.S. inventories that are set to double to a record 25.99M tons, according to the U.S. Department of Agriculture, which reported sales of 1.1M tons to China.
“We are disappointed with the sales to China,” Ted Seifried, chief market strategist at Zaner in Chicago, tells Bloomberg. “We needed at least 10 million metric tons, we got 1.1 million.”
China buys 30M-35M tons of U.S. soybeans in a typical year.
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