China buys 1.11 million tonnes of U.S. soy in four days
Large sales of soybeans to Chinese buyers provide hope for “a robust demand recovery” this fall and into the new year, said economist Todd Hubbs of the University of Illinois on Monday, the same day that exporters reported the sale of 390,000 tonnes of soybeans for delivery to China. In the space of four days, China purchased 1.11 million tonnes of the oilseed, worth $354 million.
Traders believe China is the ultimate destination of four other recent soybean sales listed by the USDA as going to unknown destinations. There is optimism that exports in the marketing year, opening September 1, will rise to levels common before the Sino-U.S. trade war, wrote Hubbs at the farmdoc Daily blog.
“Recent Chinese buying provides some hope for a robust demand recovery next marketing year,” said Hubbs. “However, U.S. China relations and uncertainties associated with the pandemic look to hang over the markets for the remainder of the year.”
Besides the sale reported on Monday, exporters said on Thursday they sold 720,000 tonnes to China, most of it for delivery in the new trade year. Monday’s sale also was for the new marketing year.