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Senior Contributor

China buys $1.8 bln in U.S. beans

Story just broke our newswire here a few minutes ago -- the Chinese soybean buy that a lot of traders were talking about today is a done deal -- $1.8 billion worth. Sounds like a healthy demand channel: One analyst says "Demand is growing faster than supply can grow, and we've got an acreage battle on many fronts."

 

See the full story here 

 

So, is this just more bull-feed, or do you think the trade was looking ahead to this already, so it won't cause much of a bump? We'll see what Marketeye can stir up on the Floor in the next couple days!

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4 Replies
Senior Contributor

Re: China buys $1.8 bln in U.S. beans

I think this is proof China will not back down on buying beans, and they are fairly prompt in hedging their bets based on dicey growing conditions, as in Argentina. As I've noted, they are essentially hedging feed supply with feed wheat instead of igniting the corn market too. China raising their bet on corn and soy at the same time could be too intoxicating for the market to leave alone.

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Senior Contributor

Re: China buys $1.8 bln in U.S. beans

I"m not fully up on the Australian wheat - do they have feed wheat to sell?  I thought their yield was hurt by the weather?

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Senior Contributor

Re: China buys $1.8 bln in U.S. beans

Aussie yields were good in the east, not so good in the west, but overall above average. Rains at harvest have created a lot of feed quality wheat. I don't think it is quite over yet. Estimates have been as high as over 50% of over 20 MMT is feed quality. Not the first time they have had trouble with rain at harvest, but I think one of the first times it affected so much. That and transportation systems cut by flood waters.

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Senior Contributor

Re: China buys $1.8 bln in U.S. beans

overnight trade is very unimpressed by this announcement. built into the market as the saying goes. fwiw

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