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18/07/2024

USDA announces sale of more than 500,000 tons of 24/25 soybeans to 'undisclosed' destinations; market talks about China

The USDA (United States Department of Agriculture) reported new sales of soybeans and meal this Thursday (18) with very robust volumes. There were 510 thousand tons of grain and 150 thousand tons of derivatives and, in both cases, the volumes are from the 20242/25 harvest and for undisclosed destinations. Speculation is that China is the destination.

"The market has been commenting on US soybean sales to China in recent days", says the Agrinvest Commodities team, with operations in both Gulf and Pacific (PNW) ports. According to brokers interviewed by the consultancy, Sinograin - the state-owned company that manages Chinese reserves - would have purchased ten boats of soybeans this week.

Chinese demand for soybeans has been quite present in the market, however, concentrated in Brazil. However, the Asian nation has been facing a moment of slightly scarcer supply here, as explained by Pátria Agribusiness. "Brazil's soybean imports may lose a little pace from now on, not due to lack of demand, but due to lack of supply", says the consultancy's director, Matheus Pereira.

In June, Chinese purchases of soybeans totaled 11.11 million tons, 10.7% more in the annual comparison. In the first half of 2024, purchases from the world's largest buyer of soybeans were 48.5 million tons, 5.4% higher than in the same period of 2023.

Source: Notícias Agrícolas