China has secured at least seven million tons of U.S. soybeans after multiple purchases during the past two weeks, which puts the Asian country over halfway to meeting the 12-million-ton purchase agreement it made with the Trump administration, according to a report from Bloomberg.
People familiar with the deals say the total comes from purchases by Sinograin, the state company in charge of managing China’s strategic grain stockpiles. The company purchased about two million tons in the last week alone, with buys continuing into this week.
Bloomberg also reports that at least seven soybean cargoes were purchased, totaling over 400,000 tons. Officially, the USDA has reported under four million tons of soybeans sold to China, but industry insiders say the total is likely much higher.
Unfortunately, prices will likely stay under pressure, even though U.S. sellers and Chinese buyers expect the target to be met. It’s unknown exactly when the beans will ship.
Sources: Bloomberg, NAFB News Service