May 4, 2007

China's buyers to sign deal for 300 million bushels of US soybeans

A trade delegation of Chinese soybean buyers is set to sign 15 purchase agreements with US soybean companies for 300 million bushels of US soybeans at a signing ceremony at the Chicago Board of Trade, CBOT said in a press release Thursday (May 3).

The signing ceremony, on May 14, at the CBOT will be co-hosted by the American Soybean Association, the Illinois Soybean Association, the Iowa Soybean Association, and the US Soybean Export Council.

Ma Xiuhong, China's vice minister of commerce, will lead the delegation of Chinese companies.

Trade analysts said while the signing is positive, the event is not expected to have a direct impact on market prices. They said the event will be more public relations and good will than a market altering event.

China already imports around 9 million tonnes of US soybeans annually, so the signing of an agreement to buy 2 million to 3 million tonnes would already be priced into the market, trade analysts add.

China is the world's largest importer of soybeans, with accumulated soybean exports from the US totalling 10.469 million tonnes in the 2006/07 marketing year.