CHICAGO : Chinese buyers procured at least five more cargoes of American soybeans on Wednesday, following their biggest purchase in months the day before, according to two exporters familiar with the deals. The shipments, totaling approximately 300,000 metric tons, are slated to arrive at U.S. Gulf Coast and Pacific Northwest ports between December and March.
The surge in soybean importation by the world’s top importer is a boon for U.S. farmers, as overseas sales of the primary U.S. export crop have not met expectations. The timing of the Chinese demand is coinciding with unfavorable weather conditions in Brazil, the leading supplier of soybeans.
The U.S. Department of Agriculture (USDA) reported private U.S. soybean sales of more than 900,000 metric tons to China and undisclosed locations on Wednesday, affirming a Reuters story published the day before.
Chicago Board of Trade benchmark U.S. soybean futures hit a two-month high on Wednesday in response to the news of Chinese demand, while cash market premiums for soybeans shipped by barge to Gulf Coast terminals and loaded for export increased by up to 6 cents per bushel after rising by as much as 10 cents the day before.