China, Mexico buy U.S. soybeans as prices rally to 2-1/2 year highs

U.S. soybean export sales remain robust despite prices climbing to the highest in more than 2-1/2 years, according to data from the U.S. Department of Agriculture, as Mexico and top importer China booked large purchases.

 

Karl Plume, Reuters

via Nasdaq - Oct 8, 2020

 

CHICAGO, Oct 8 (Reuters) - U.S. soybean export sales remain robust despite prices climbing to the highest in more than 2-1/2 years, according to data from the U.S. Department of Agriculture, as Mexico and top importer China booked large purchases.

 

The USDA, in a daily export sales announcement, said private importers sold 374,000 tonnes of the oilseed to China, 152,404 tonnes to Mexico and 132,000 tonnes to undisclosed destinations. The combined deals made for USDA's largest daily soybean export sales announcement since Sept. 8, agency data showed.

 

The sales come amid concerns about soybean planting delays due to dry weather in Brazil, the world's top soy exporter and the top supplier to China. Stalled planting, analysts say, could lift demand for U.S. soybeans in January and February when early-harvested Brazilian beans normally begin displacing U.S. shipments.

 

The daily sales announcement came as the USDA also released export data showing net sales of 2.591 million tonnes last week, the fifth straight week in which sales have topped 2 million tonnes. More than 1.5 million tonnes of last week's sales were to China.

 

Chicago Board of Trade soybean futures Sv1 on Thursday morning rallied to their highest since March 8, 2018, before the start of a U.S.-China trade war that slashed U.S. exports to the top customer.

 

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