China’s Demand for U.S. Grains Is Bright Spot in Jittery Market
(Bloomberg) -- China’s voracious appetite for American farm products might be a rare source of comfort for uneasy investors looking at commodity markets battered by resurgent Covid infections and stronger dollar.
Soybean sales were the highest since January for the week ending in Aug. 12, with China purchasing over 1.1 million tons and total sales at about 2.2 million tons. U.S. wheat exports to China were the most since April at 197,400 tons. China also boosted its cotton purchases to an eight-month high.
Grains markets are falling across the board, reacting to a stronger dollar, as well as better weather forecasts and strong yield prospects for corn and soy in several key states. But earlier this week cotton futures jumped to seven-year highs before paring gains on bets that China would continue to underpin strong demand.
The U.S. has been expecting China to ramp up purchases, but these are significant sales, Jack Scoville, a vice president for Price Futures Group in Chicago, said in a phone interview.
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