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Chinese importers buy U.S. soybeans; more purchases expected

Agriculture.com Staff 04/06/2006 @ 12:01pm

CHICAGO (Agriculture Online) -- Representatives from U.S. export companies met with Chinese soybean processing companies at the Chicago Board of Trade today. The group signed trade agreements representing 4.98 million metric tons of U.S. soybeans and 20,000 metric tons of U.S. soybean oil.

The soybeans within today's signed contracts are expected to be delivered to China this year. "These purchases are for delivery in 2006," said Cao Xumin, representing the Chinese delegation, known as the Sino-U.S. Soybean Industry Exchange.

The group is expected to sign additional contracts with U.S. companies throughout the rest of their week-long visit to this country. In addition to today's stop in Chicago, they will visit grain terminals in Minneapolis and Seattle, and are expected to meet with USDA officials as well.

The Sino-U.S. Soybean Industry Exchange is made up of 13 Chinese soybean processing companies, representing 67% of all Chinese soybean imports. Six U.S. companies signed 10 agreements with the Exchange today.

Xumin, who is also president of the Chinese Chamber of Commerce, said, "These agreements are designed to improve U.S. and Chinese relations."

Dan Duran, chief executive officer of the U.S. Soybean Export Council, said today's agreements highlight the importance of international companies forecasting purchases.

"This is a commitment by the Chinese companies to buy a certain amount of product from the U.S. soybean industry," he said. "The specifics of the contract amounts, and specific tonnage by each country, is not as important as the fact they are committing to buying U.S. product."

CHICAGO (Agriculture Online) -- Representatives from U.S. export companies met with Chinese soybean processing companies at the Chicago Board of Trade today. The group signed trade agreements representing 4.98 million metric tons of U.S. soybeans and 20,000 metric tons of U.S. soybean oil.

China is now the United States' largest customer for soybeans. In the current marketing year that began on September 1, 2005, China has purchased 9.163 million metric tons -- or 336 million bushels -- of U.S. soybeans.

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