NASHVILLE, TENN. (RFD-TV) — According to a new Reuters report, citing unnamed sources, China bought 14 cargoes of U.S. soybeans. The soybeans purchased this week are expected to leave ports in the coming weeks.
China still has a long way to go before it meets its commitment to buy 12 million metric tons of U.S. soybeans this year. With this purchase added to the three cargo ships reportedly purchased ahead of the meeting between Presidents Trump and Xi Jinping, the total volume of soybean purchases comes to around 840,000 metric tons, accounting for about 7 percent of their total commitment.
However, other numbers released this week revealed that China also canceled a previous order for 100,000 metric tons. Reports show eight of the soybean cargo ships will set sail next month, with the rest leaving sometime in January.
Brian Hoops with Midwest Market Solutions told RFD-TV News that orders and cancellations will be worth watching in the weeks ahead.
“We’re looking at China, not really buying a lot of soybeans—pretty good weather in South America – and yet, the market continues just to march higher,” Hoops explained. “We are in a tactical uptrend here for soybeans in the entire soy complex. That is giving us some strength from algorithmic-type trading on dips in the marketplace, to see if we continue to push higher. So we’re seeing a lot of strength in that, soybeans.”
Hoops also said to keep an eye on weather conditions in Brazil, currently China’s top soybean supplier.
“And really, the thing to watch, I think, even as much as China is based in the U.S., it’s going to be South American weather as we go into the last half of November into December. This is going to be pretty critical as planting there is around 80% done in Brazil for the soybean market, corn planting, the first crop, anyway, a little bit over 80% done. So, weather becomes just a vital, important factor going forward.”
A shift in South America’s weather could shake up the crop outlook. Argentina and southern Brazil are trending drier, threatening soil moisture for winter wheat, corn, and first-season soybeans. Meanwhile, central Brazil may see increased rain, easing dryness, but delaying soybean planting.
Meteorologists link the pattern to a peaking La Niña, with conditions possibly normalizing early next year. Farmers will be watching closely, as this volatility could impact corn and soybean production across the continent.
