China purchases US soybeans despite trade talk uncertainty

Bloomberg

Chinese private soybean processors purchased about five cargoes from the US this week, according to people familiar with the deals, less than what was expected by the market.
The private crushers in the world’s biggest soybean importer bought the cargoes for December and January shipment, said the people, who asked to not be identified as the matter is private.
Despite Beijing issuing waivers for retaliatory tariffs on some US beans, the pace of purchases has been disappointing the market. Deals that have been confirmed for shipment in January from the US may only be 10% to 15% of what the market expected, according to Monica Tu, an oilseed analyst at Shanghai JC Intelligence Co.
“Buyers are cautious,” said Tu. “There’s uncertainty because of the mixed information on trade talks between China and the US.”
Still, the attractive prices of US beans compared with rival supplies such as those from Brazil may have led to the renewed imports, while optimism that profits from crushing soybeans in China will rise after the Lunar New Year may have helped spur them too, she said.
Reuters reported earlier that Chinese commercial importers purchased as much as seven cargoes of US soybeans for December and January shipments amid competitive US prices.
China’s purchases of the oilseed from the US, the world’s second-largest grower, have been viewed as a barometre of the negotiations.
President Donald Trump said that the talks are moving “rapidly.”