China is making more purchases of U.S. soybeans this week ahead planned trade talks in Beijing between the U.S. and China next week. China’s biggest food company was asking for prices Wednesday. The alleged purchases come after the most recent buy just before Christmas when China purchased roughly 1.2 million metric tons of U.S. soybeans, according to data provided by the U.S. Department of Agriculture. However, data on the latest expected sales may not be published, as much of USDA is closed as part of the government shutdown.
Sales of other commodities are expected to China, as well. Arlan Suderman of INTL FCStone told Bloomberg News China could seek U.S. corn this month, but the market has not seen confirmation. Suderman notes “Supplies are ample, but the balance sheet would quickly tighten if China re-enters the market with significant purchases.”
You can hear Suderman regularly on Hoosier Ag Today stations and in our Morning Edition podcast for his market analysis.
Source: NAFB News Service