China buys at least 10 more cargoes of US soybeans, traders say
DBA•Soybean prices, USDA reporting and Sinograin auctions
Importers have taken advantage of a recent drop in U.S. soybean prices driven by expectations for improving crop weather in the United States. On Thursday, soybean futures rose slightly on the Chicago Board of Trade after touching a one-month low on Wednesday.
The U.S. Department of Agriculture confirmed in its daily reporting system that exporters sold 122,000 metric tons of U.S. soybeans to China for delivery in the crop year that starts on September 1. Exporters must report to the USDA any deals over 100,000 tons within 24 hours.
Sinograin, which manages China's strategic reserves, has been auctioning imported soybeans to make room in storage for incoming U.S. cargoes. Sinograin sold about 67% of the 501,000 metric tons of imported soybeans offered at its second auction in recent weeks on Wednesday, two traders said.
Purchases follow trade talks and reported buying commitments
The deals follow trade talks between Washington and Beijing that, according to the White House, included Chinese commitments to buy 25 million metric tons of U.S. soybeans annually and boost purchases of other American farm goods. China has bought about 6 million metric tons so far for delivery in the U.S. crop year that starts on September 1, a U.S. industry source said.
"This is great news," said Mike McCranie, a South Dakota farmer and chair of the U.S. Soybean Export Council's board of directors, on the sidelines of a council conference in Chicago.
"It's a good indication that China is going to follow through on the purchase commitment to buy 25 million tons."
On Tuesday, Archer-Daniels-Midland CEO Juan Luciano said China appeared on track to fulfill the commitment and may also book shipments of U.S. sorghum, barley and other crops.
