BEIJING: Chinese state-owned importers bought at least eight cargo shipments of US soyabeans on Friday, or at least 480,000 tonnes, the country’s largest US soyabean purchases in 4-1/2 months, two US traders familiar with the deals said.
The deals, which were for shipment from US Pacific Northwest ports mostly in October, came after new-crop November soyabean futures on the Chicago Board of Trade tumbled nearly 7% on Thursday to the lowest point since March.
China had slowed its US soyabean purchases in recent months as cheaper shipments of newly harvested Brazilian soyabeans came available and as US soyabean prices soared to the highest in about 8-1/2 years.
But this week’s price plunge gave the world’s largest soyabean importer a chance to secure purchases needed for later in the year to feed its hog herd, the world’s largest.
Concerns are also growing that drought could reduce the US harvest and further raise prices.
China has largely focused on feed grain purchases from the United States this spring, booking record volumes of US corn and sorghum as China’s domestic corn prices soared to historic highs.
CBOT soyabean futures rallied from multi-month lows on Friday, with new-crop November soyabeans hitting a session high after Reuters confirmation of the Chinese purchases.
Total soyabean sales volumes may increase while more purchases are tallied as traders said deals for as many as 14 cargoes were being considered.
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