Bean futures trade over 10-dollars; China allegedly buys 15 plus cargoes

by | Sep 16, 2020 | 5 Ag Stories, News

Soybean futures quickly rebounded, as rumors hinted at increased sales.

U.S. Department of Agriculture officials today confirmed a sale of 327,000 metric tons of soybeans to China, for delivery in the 2020/2021 marketing year. However, all signs point to larger sales, says Jim McCormick, branch manager of Ag Market.

“What’s firing the market up today is we’re hearing that China bought 15 to 20 cargoes of U.S. beans for December/January delivery, in addition to what was announced this morning,” McCormick says. “These are unconfirmed, but the way the market is going up, I’d say we’re going to get confirmation of this sale in a day or two.”

McCormick recommends assessing break evens. He also says, “Do not fear locking in profits.” Overall, McCormick remains optimistic. He anticipates harvest pressure, but also further demand.

“When you get these big China purchases, it shows you demand is strong. I think it’s something to be optimistic about, if you’re the American producer,” McCormick says. “China has bought a lot of corn. They’ve backed off a little, but I would not be surprised to see more big purchases in corn from China. They have a lot of people to feed and the world grain supplies are tightening. We have a lot of supply to hand to them.”