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China already reportedly looking to secure 2021 U.S. soybeans
There are reports China has begun purchasing 2021 soybeans from the U.S.
University of Minnesota grain market economist Ed Usset says if true, it indicates the Chinese have big buying plans again next year.
“They must look at new crop values, and I’m looking at the November 2021 contract $2.00 off its lows of six months ago, so they still see that as a value. I don’t know how you interpret news like that as anything other than good.”
But he tells Brownfield China has been known to cancel purchases.
“I’m not suggesting or predicting that’s what (China) is going to do now, but funny things like that can happen. I do remember a time when China was an aggressive buyer, followed by an aggressive canceler of contracts.”
Usset says the U.S. soybean export pace to China has slowed over the past few weeks and the lack of fresh news has brought about some consolidation. He points out beneficial weather for South American growers is also weighing on the market.
