China’s state-owned importers bought at least eight cargos (480,000 MT) of U.S. soybeans, today, two traders familiar with the deal toward Reuters. This marked the country’s biggest U.S. bean buys in 4.5-months and comes at a time when the country is typically sourcing the bulk of its bean needs from South America. Traders have signaled deals for as many as 14 cargoes of U.S. soybeans (840,000 MT) are being considered.
China is stocking up on feed supplies needed to rebuild its hog herd. Plus the combination of tight ending stocks, existing drought in northern and western areas of the Corn Belt and the forecast for heat and varied rainfall could have the country concerned about additional price increases.
Of note, rumors also circulated this morning that Asian buyers were buying some corn on the price break.