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China buying more U.S. soybeans, for now
The Chinese appetite for U.S. soybeans is growing, at least for now.
China most recently purchased 720,000 metric tons, with USDA reporting the bulk of those beans are new crop.
Paragon Investments ag risk manager Jamey Kohake says for the time being, the phase one trade agreement seems to be on more solid ground.
“I think with the President not getting really wild and extremely more aggressive with new tariffs with the Hong Kong situation two weeks ago, that has kept China in phase one.”
He tells Brownfield last week’s buying activity indicates China is saying one thing and doing another.
“Because on Monday of last week they said they were not purchasing any beans or pork for the short-term because their supplies were huge, and then they turned around and bought every day.”
A tightening supply of Brazilian soybeans, along with that country’s currency gaining strength, have also incentivized Chinese imports of U.S. beans.
