China buys U.S. soybeans, which contributes to higher prices

According to experts, on Tuesday state-owned Chinese company has contracted another 840 thousand tons of U.S. soybeans for delivery terms in the first quarter of 2019.

last week, China has contracted 1.5 million tonnes of U.S. soybeans.

This confirms the implementation of China's commitments for the purchase of US agricultural products in the framework of the agreements reached in early December between D. trump and XI Jinping.

New agreement supported the soybean prices in Chicago, which yesterday went up by 5 $/t and traded for 338 $/t. However, significantly slower than expected pace of purchases restrain the growth of prices.

Yet buy soy only state-owned companies, who are guaranteed a refund of 25% import duties. Private Chinese importers are expecting the cancelation fee, and then will also be able to contract an American soybeans.

a ban on the import of soybeans from the United States allowed other countries to step up sales of soybeans to China.

So, Brazil has exported in the direction of 80 million tonnes of beans by the end of the season, according to experts, the volume of exports will reach 84 million tonnes against 76 million tonnes last year. Canada this season, exported 2.7 million tons of soybeans, which is 23% higher than the previous MG, and total exports of soybeans, according to USDA estimates, will exceed last year's level by 10% and amount to 5.3 million tonnes.