China Picks Up More U.S. Soybean Cargoes on Brazil Crop Concerns
(Bloomberg) -- China is picking up more U.S. soybeans, buying cargoes for February as dry weather delays the crop in Brazil, the world’s top producer and exporter, according to people familiar with the matter.
Buyers in the Asian nation in the past two weeks bought two to three cargoes for February shipment from ports in the Pacific Northwest, said the people, who asked not to be identified because the deals are private. That’s usually the shipping period when China shifts purchases to Brazil as the harvest starts.
Chinese buyers are trying to manage the transition from the U.S. export season, which usually peaks in the fourth quarter. Processors, which crush soybeans to make cooking oil and animal feed, want to ensure they have enough supplies to cope with delays to the Brazilian crop.
Processing margins have improved, possibly prompting more imports from the the Pacific Northwest to make up for a shortfall from Brazil. China usually requires about 8 million metric tons of soybeans a month and buys mainly from Brazil starting in February. The U.S. is the second-biggest shipper.
The Asian nation has already purchased 31.8 million tons of U.S. soybeans for shipment in the 2020-21 season, according to data from the U.S. Department of Agriculture.
©2020 Bloomberg L.P.