According to the Reuters news agency, China on Wednesday made the first significant purchase of American soybeans since the escalation of the trade conflict. This information pleased U.S. soybean growers, who harvested another bumper crop in 2018.
The volume of purchases is said to be 1.5 MMT. Because of the trade disputes, Chinese importers actually stopped buying American soybeans and thereby provoked a drop in their Chicago price, reports UkrAgroConsult.
In December’s report, USDA experts left their estimate for 2018/19 soybean exports from the U.S. unchanged at 51.7 MMT (57.95 MMT last season), although shipments are far behind MY 2017/18. Actual exports between September 1 and November 29 were down 43% year-over-year, with contracted volumes being 17% lower than by the same date last year. Nevertheless, in view of successful talks between the U.S. and Chinese leaders, the market expects a substantial rise in supplies to China. As a result, soybean prices are on the rise. The nearby soybean futures contract has already gained 6% over the month, closing Wednesday’s trade at 920 cents/bushel.
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