December 17, 2003
China To Buy 500,000 Tons US Soybeans
China's trade delegation is likely to confirm its purchase of about 500,000 tons of US soybeans.
Last week, a Chinese industry official said the visiting team could buy about 1.5 million tons of soybeans.
"We are more sceptical and expect a smaller quantity closer to around 500,000 tons as the uncommitted U.S. soybean export availabilities are already very, very small," Oil World said.
"Instead China will have to shift additional purchases to Brazil and Argentina as well as the other South American origins Bolivia, Uruguay and Paraguay."
It expects such a shift to South America in coming weeks. "If new Chinese purchases of U.S. soybeans are confirmed it would additionally squeeze the U.S. soybean balance and provide another reason for U.S. soybean futures to rally," it said.