Rumor confirmed as China cancels soybean purchases

Word is that China may not be holding up its end of the bargain.

Rumors are circulating from traders that may be true. According to Brian Hoops, with Midwest Market Solutions, “There’s been some rumors that China is now cancelling cargoes of U.S. soybean purchases.”

Reuters is now reporting that is true, according to three trade sources. Those sources say that the cargoes were scheduled for shipment in December and January, but were cancelled after crushing margins collapsed, following a steep rally.

This is the first hint of slowing demand from China after a five month shopping spree. The move brought export basis levels down 30 percent, indicating reduced competition among buyers.