China expands Argentina’s soybeans who bought 20 cargo, said traders

Chinese importers continue to increase Argentine soybean purchases after the transfer of South American suppliers to abolish export taxes for a while making the price competitive, traders said on Wednesday.

The purchase cuts the US market share when farmers begin to harvest bumper plants that are shunned by China in the middle of the trade war between the two largest economies in the world.

Because Argentina raised its tax on Monday, Chinese buyers have ordered around 20 cargo, or around 1.3 million tons of Argentina soybeans, two traders said.

On Tuesday, Reuters reported that Chinese buyers had ordered at least 10 cargo, with one trader placed a number in 15 cargo the size of Panamax each 65,000 metric tons each.

US soybeans have become very expensive for Chinese buyers, thanks to the rate of retaliation charged by Beijing in their trade war.
“Basically China will have enough beans without US beans,” said a trader at an international company that sends beans to China and is one of the cargo buyers.

“Most of the cargo is for November and about 20% delivery for next year’s shipping from the new Argentine plant which will be harvested starting April.”

Traders spoke to Reuters on anonymous condition, because the problem was sensitive.

Purchases include a mixture of old and new plants, with a price of around $ 2 per bushel to the Chicago Trade Council (CBOT) of the November Soybean Contract (SX25), said two Asian traders.

Argentina said the suspension of seeds of seeds will last until October or until exports that are declared to reach $ 7 billion, a step that has pushed the Lower Chinese soybean period.

Sustainable purchases from Argentina help China fill more supply gaps during the period which is usually dominated by US sellers, traders added.

Beijing hasn’t ordered US soybeans from his autumn harvest, the traders said.

Chinese crusher margin for Argentine soybeans attracts about 200 yuan ($ 28) per ton, said Wang Wenshen, an analyst at Sublime China Information.

“China is likely to speed up the purchase of Argentina soybeans to fill the procurement gap from November to January before the time limit of October 31 or the quota limit of $ 7 billion,” Wang said.

“This will further reduce market dependence on US soybeans.”
Source: Reuters