IARN — Extensive negotiations between the world’s two largest economies are paying off, as China remains actively involved in the United States grain markets.
“Private exporters reported export sales of 456,000 metric tons of soybeans for delivery to China during the 2020/2021 marketing year,” according to U.S. Department of Agriculture officials. The new sale reflects a trend set by Chinese buyers, says Matt Bennett, founding partner of AgMarket.Net.
“The Chinese have been buying beans almost every day for the last three or four weeks,” Bennett says. “This morning we got another export sales announcement for 2021. Bottom line (is) they have picked up the pace of purchases of both corn and beans.”
Data from the General Administration of Customs of China and Reuters indicates China imported 10.99 million metric tons of soybeans in July, fractionally topping 2017’s record. Bennett anticipates more sales of soybeans and corn.
“They’ve been using more corn, about 25 to 30 million metric tons more than they’re producing. The Chinese want to have large stockpiles of grain. Think about the sales they’ve made. You’re talking 35 to 40 million metric tons of corn sold at government auctions,” Bennett said.
Story courtesy of the Iowa Agribusiness Radio Network.