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United Soybean Board

USDA reports Chinese purchase of 600,000 tons of U.S. soybeans


SD Ag Connection - October 2, 2019

WASHINGTON, DC - China bought more American soybeans on Monday as the U.S. Department of Agriculture reported stockpiles of the crop were smaller than traders expected, sending futures prices to nine-week highs. Corn futures approached a seven-week high after the USDA report also showed tighter-than-expected inventories of the yellow grain, reports Reuters.

Farmers welcomed the rallies after crop prices plunged last month when the federal agency estimated that this autumn’s harvests will be larger than many projected. They have struggled due to low prices, the U.S.-China trade war and historic springtime flooding, which caused unprecedented delays in corn plantings.

China, the world’s largest soybean importer, slashed U.S. imports after the start of the trade dispute last year. Chinese buyers have recently made a string of purchases, though, including up to 600,000 tonnes on Monday, according to traders.

“We’re seeing China business every day,” said Ted Seifried, chief market strategist for Zaner Ag Hedge in Chicago.

Reuters reported that most actively traded soybean futures were up 2.4% at $9.04 a bushel at the Chicago Board of Trade by 12:45 p.m. CDT (1745 GMT). The most-active corn contract was up 3.3% at $3.83-3/4 a bushel. Most-active wheat futures were up 2.3%at $4.98-1/4 a bushel.

This leatest announcement could help pave the way to a more conciliatory meeting between high-level officials next week in Washington, when they try to resolve the trade war between the nations.

It could also boost support for  U.S. President Donald Trump from American farmers, an important political constituency in next year’s elections. Growers have suffered from a halt of exports to China as a result of the Trump administrations trade war with what was once the America's largest trading customer.






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