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USDA: US sells 318,000 t more soy to China on Friday

Posted by Marina

The USDA (United States Department of Agriculture) reported a new sale of soy from the country to China on Friday (4) of 318 thousand tons. The volume is all from the 2020/21 harvest and adds to the other 450 thousand tons already reported this week. The Asian nation continues to be very present in the North American market, not only seeking to fulfill the goals determined in phase one of the trade agreement between Beijing and Washigton, but also to meet its growing consumption needs.

Throughout the week, the market speculated on purchases of at least 480,000 tons of oilseed by Chinese state-owned companies in the North American market. In Brazil, the supply is quite limited, and in China, the demand keeps growing. The country has been recomposing its pig plantations after the peak of the African Swine Fever and this is one of the sectors that most demands and pulls product at this moment.

"I believe there is much more need to buy from China than to show goodwill (to the United States), explained the Managing Partner of Consultancy Cogo Intelligence in Agribusiness, Carlos Cogo, in an interview with Notícias Agrícola this week." China is buying more and if this is due to the agreement, it is not so important. The importance is that they are buying more ", he completes.

Thus, Cogo believes that this recovery does not only motivate larger purchases now, as it signals an increase in Chinese soy imports next year and in the next. The international consultancy BusinessWire brings a study indicating that the animal feed market in China will grow 4.06% over the next five years.



MARKET IN CHICAGO

Despite the market acting with stability this Friday morning (4), it still rises and tests light highs on the Chicaago Stock Exchange among the most traded positions of soybeans. The commodity futures were up, around 11:50 am (Brasília time) between 0.50 and 2 points in the main contracts, bringing November to US $ 9.68 and March / 21 to US $ 9.73 per bushel.

The gains lead to ten consecutive advancement sessions and the soybean market on the Chicago Stock Exchange still reaches its fourth weekly gain motivated mainly by the demand from China in the USA. And as the experts explain, it is not only soy that has been bought by the Chinese, but other products - with great emphasis on corn - are also on the agenda and favoring the rise in prices of other commodities.

While China is buying more, the international market speculates how much the new North American crop was lost due to the adverse weather in the USA, especially in August.

For Steve Cachia, a consultant for Cerealpar, "the soybean market on the Chicago Stock Exchange maintains the upward trend despite comments that the fall in the American harvest may not be as great as expected. With this, the demand again supports, with new purchases of American soybeans by China and expectations of higher volumes confirmed in the coming days and weeks ".

Thus, expectations for the new USDA (US Department of Agriculture) monthly supply and demand bulletin of the 11th are also high for traders.


Source: Notícias Agrícolas

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