Soybean orders spike as Argentine trade spat boosts margins

Chinese soybean crushers ordered 15 cargoes of soybeans last week – of about 60,000 tons each – for shipment this year, Bloomberg reported. It was a sharp increase over the average of orders of three to five orders per week in March; processing margins for soybean shipments have increased to more than US$29 per metric ton. Soy oil prices have risen after China imposed new restrictions on imports of Argentine soy oil – introduced in response to Argentine restrictions on certain Chinese imports – but bean costs have fallen in recent weeks. The new orders placed last week are from both Latin American and US crops. Analysts said that the restrictions on Argentine soy oil imports would be temporary as negotiations between the countries continued, and as Argentine suppliers found ways around the blockade.