China’s state-owned grain trader COFCO bought at least 14 cargoes of US soybeans on Monday, or at least 840,000 metric tons, for shipment in December and January, two traders with knowledge of the deals told Reuters.

Eight of the vessels were for shipment in December and January from US Gulf Coast terminals, while the rest were for shipment in January from Pacific Northwest ports, one trader said.

A second trader estimated around 75 per cent of the sales were for Gulf shipment, with the remainder from the PNW.

The sales total may ultimately be larger if more deals are finalised, the traders said.

China has largely shunned US soybeans this season due to a heated trade war with Washington, sourcing supplies from export rivals Brazil and Argentina instead.

Monday’s US soy purchases were China’s largest since a summit between US President Donald Trump and Chinese President Xi Jinping in South Korea last month.

The White House said China had agreed to buy 12 million metric tons of US soybeans this year, but only a small volume of sales had occurred before Monday.

Trump on Friday said sales would be on track by the spring.

US soybean futures on the Chicago Board of Trade rallied nearly 3 per cent on Monday to a 17-month high on the trade optimism.
Source: Business Times