China may soon reduce the demand for agricultural products through the rapid growth of prices

due to active demand from China's rapid growth of the world prices for soybeans, wheat and corn stopped, and for several weeks the quotes are on record high levels in anticipation of the new factors.

However, the high prices reduce the demand for products, which decreased due to quarantines in many countries of the world. Now the markets maintain data on active purchases by China of soybean and corn in USA and wheat from France.

According to customs, China in October 2020 increased compared to October 2019.

the

wheat - 127% to 630 thousand tons,

barley – 98,3% to 1.34 million tons,

soy by 41% to 8.69 million tonnes.

• import corn 1151% to 1.14 million tons,

Just 2020/21 MG China has increased compared to the corresponding period of the previous season:

the

wheat - 163,6% to 6.69 million tons,

barley by 13.4% to 5.98 million tons.

• corn imports 97.3% to 7.82 million tons,

However, starting from 15 October, China sharply reduced purchases, on the one hand due to the rapid rise in prices, and the promise of Biden to cancel a trade agreement, which obliges China to buy U.S. agricultural products at $ 50 billion a year.

Also yesterday, there was news that some Chinese refiners last week refused to purchase several consignments of soybeans from the United States, paid a fine of contracts, as the refining margin has declined due to the rise in price of soybeans in the U.S. to 4-year high. The increase in stocks of soybeans and soymeal in China in comparison with last year amid rising prices gradually reduce demand.

Export sales of soybeans from the US decrease during the month, and last week amounted to 1,387 million tons and since the beginning of the season – 27 mln t. exports of soybeans in the season was 22.3 projected USDA 59.8 million tons.

China has already bought 20 million tons of soybeans in the U.S. are necessary in the period October-January, when stop of supply from Brazil. Therefore, China is stepping up purchases of soybeans from the United States only with the threat of reduce the crop in Brazil due to the increase of the precipitation deficit, although planting is almost complete and concerns over the backlog of terms of sowing anymore.