Fri, Dec 07, 2018 - Page 10 News List

US soy, gas unattractive to China, despite trade truce

Bloomberg

The premium for Brazilian beans over US ones has slumped, partly because supplies from the new Brazilian crop are increasing.

The profit from processing US beans in China has almost halved since October, falling below US$100 a tonne as of Wednesday, based on Bloomberg calculations using futures prices, exchange rates and prevailing taxes, but not including freight, insurance or other costs.

And, again, that is before taking into account the 25 percent tariff.

Overall, China’s buying might also be dimmed by high inventory of soybean meal, which has slowed crush volumes, the grain center said in the report.

“Although the oil consumption was strong in winter, the price trend was weak, which affected the traders’ enthusiasm for picking up soybeans,” the center said.

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