According to reporting by Bloomberg, China has opened the floodgates and made large purchases of US soybeans as trade talks between the two countries gets underway, with Bloomberg citing news sources familiar with the transactions.
Key quotes
State stockpiler Sinograin bought at least 11 cargoes on Monday, said the traders, who asked not to be identified because the deals are private. The move comes just as U.S. and Chinese officials begin trade negotiations in the hope of reaching a deal during a 90-day truce between President Donald Trump and his counterpart Xi Jinping reached in early December.
“Last week, the Chinese state companies were dead in the water, and the private crushers bought perhaps two cargos of beans,” Charlie Sernatinger, global head of grain futures for ED&F Man Capital Markets in Chicago, said in an emailed report. “Today they came out with guns blazing, and were said to have bought 25 cargos of beans from the U.S.”
China last made a big purchase of soybeans before Christmas, scooping up about 1.2 million metric tons for delivery by Aug. 31, according to the U.S. Department of Agriculture.
China will wait until after trade talks this week before deciding on buying feed grains such as corn and sorghum from the U.S., people familiar with the matter said last week.
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