Soybean futures held on to Tuesday’s gain,
the biggest since the end of April, as state-run Chinese
companies return to the market for American supplies after a
jump in Brazil’s currency made U.S. beans more competitive.
Soymeal futures in Dalian climbed to the highest in over a
month.
China has been bidding on new crop supplies for shipment
from ports in the U.S. Gulf and Pacific Northwest, according to
people familiar with the situation. American exporters also
reported sales of 258,000 tons of soybeans to China on Tuesday,
of which 198,000 tons are for the coming marketing year.
While the sales and the bidding are signs that China’s
taking steps to meet commitments under the U.S. trade deal
despite escalating tensions, they come with the Brazilian real
at a four-week high against the dollar, and the shipments are
timed for when there are traditionally fewer South American
beans available. Corn climbed for a third day on hopes of
Chinese buying, while wheat fell for a third day on plentiful
global supplies.
(Bloomberg)