Author: Naveen Thukral and Ella Cao
SINGAPORE/BEIJING, Jan 6 (Reuters) – China’s National Grain Reserve Group bought 10 cargoes of U.S. soybeans this week, three traders told Reuters on Tuesday, as the world’s largest buyer continued to purchase from the United States after a trade truce in late October.
Traders said the cargoes total about 600,000 tons and will be shipped between March and May, and total U.S. soybean purchases are now close to 10 million tons.
That represents more than 80% of the 12 million tons that U.S. Treasury Secretary Scott Bessant said China has committed to buying by the end of February.
A trader with direct knowledge of the transaction said, “COFCO purchased more U.S. goods, with the total purchase volume very close to 10 million tons.” “We think China will buy millions of additional tonnes to meet its target.”
Chinese buying has supported Chicago soybeans in recent weeks, helping the market end the year on a positive note as a resumption of U.S. imports after a thaw in relations between China and the U.S. has erased much of the damage done during the trade war.
Soybean prices in Chicago were up 0.1% at $10.62 a bushel as of 1140 GMT on Tuesday.
Beijing has stepped up purchases of U.S. soybeans despite a domestic glut caused by record arrivals from South America and weak demand.
In December, Sinograin held three public auctions to make room for U.S. shipments amid ample domestic supplies.
However, according to previous reports by Reuters, the average price and clearance rate fell in consecutive rounds, and only one-third of the soybeans were sold in the final auction.
Traders had expected COFCO to sell about 4 million tons at the auction.
(Reporting by Ella ‌Cao in Beijing, Naveen Thukral in Singapore, Gus Trompiz in Paris; Editing by Louise Heavens)
