Back to Main China Offers Government Owned Soybeans

• Published: 2010-02-08 19:14:39

  Last week the Chinese government announced that they would offer 208,400t of soybeans for sale on the world market. This added pressure to CBOT soybean futures and saw prices fall. China has been the dominant buyer of US soybeans this season, and the news that they were selling domestic beans rattled the market.
  
  However on closer inspection losses may have been overdone. The parcel up for sale is not particularly large – as a comparison China took 262,500t of US soybeans last week.
  
  The Government owned soybeans are priced considerably higher than Chinese cash prices and international landed beans. This indicates they will not provide competition to US beans.
  
  The USDA weekly export sales report, reported soybean sales of only 381,500t for delivery in 2009/10 - a marketing-year low. China took 262,500t of that, noticeably less than they have been booking of late. There was also a small sale of 3,100t for delivery in 2010/11. That leaves this week's sales at 384,600t, well below trade estimates ranging from 650,000 to 800,000t. While soybean sales are low, they are still on track for meeting USDA marketing year estimates.
  

  Tags: Oilseeds ,  Feature Daily Article , 

  

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