A trade delegation from China is expected to sign agreements on Thursday to import an unspecified amount of US new-crop soybeans, Reuters reported. US grain analysts expect China to buy up to 2 million tons of the staple for the 2011/2012 marketing year. Don Roose, president of US Commodities, said he does not believe the purchase has anything to do with Chinese President Hu Jintao’s visit to the US this week. The Chinese delegation is not expected to make any corn purchases. China’s aggressive purchase of soybeans on the international market has contributed to a rise in global soybean prices to above US$14 per bushel on the Chicago Board of Trade for the first time since September 2008. However, shipments from the US have begun slowing as profit margins among Chinese soy processors declined, resulting in canceled orders. The agreement, some traders say, is for show, and should not provide any positive support to soy futures prices.
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