China State Buyer Returns to U.S. Soybean Market
For the first time since early April, China’s state grains buyer, Sinograin, has inquired about U.S.-origin soybean prices, indicating that Beijing is preparing to resume U.S. soybean purchases after six weeks of no buying.
The development comes after China pledged the week before to buy more U.S. products, including agricultural commodities, in order to avert a trade war that would have a negative effect on global economies.
Sources told Reuters that Sinograin has asked U.S. suppliers to forward quotes for shipments of both old crop and new crop soybeans starting in August; setting notice to other Chinese companies and buyers that buying U.S. soybeans is now approved by Beijing.
Sources also stated that COFCO is also now allowed to pursue U.S. soybean shipments; however, it has not yet due to large purchases made in recent months.