China has restricted the purchase of soybeans and increased imports of vegetable oils

2019-09-03 12:09:16
Machine translation
China has restricted the purchase of soybeans and increased imports of vegetable oils

Chinese traders have reduced the purchase of soybeans in October, in anticipation of signing a trade agreement between the US and China on the results is scheduled for September the next round of negotiations.

 

at present, China has purchased 4 million tonnes of soybeans in October of the planned 6.6 million t That is, for delivery in October, another 40% of the volume remains free to purchase. Low margin of soybean in the country also reduces demand.

 

meanwhile, in Brazil from April to August this year, the price of soybeans has increased by 12%, which also affects the margins of processors, since the share of Brazilian soybeans is 75% of the total imports of the oilseed to China.

 

experts predict Oil World in 2019/20 MG China may increase in comparison with the previous season, imports of vegetable oils and fats 7% from 11.64 to 12.5 million tons In particular, the import of palm oil will increase by 5% to 6.85 million tons, sunflower oil – 10% to 1.1 million tonnes, soybean oil – by 44.5% from 0.83 to 1.2 million tons.

 

Due to a decrease in China, which is the main global consumer of soybeans, consumption forecasts, world prices for soybeans are being gradually reduced despite the reduction in production forecasts. After the refusal from the purchase of U.S. soybeans last year, prices fell by 25%. The prices for Brazilian soy in the current season do not have such high premiums as in the us last year.

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