Chinese private soybean processors purchased about five cargoes from the US this week, people familiar with the deals said, less than what was expected by the market.
The private crushers in the world’s biggest soybean importer bought the cargoes for next month and January shipment, said the people, who asked not to 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.
US soybeans on Friday closed at US$9.18 per bushel, down 1.4 percent for the week.
Deals that have been confirmed for shipment in January from the US might only be 10 to 15 percent of what the market expected, according to Monica Tu, an oilseed analyst at Shanghai JC Intelligence Co (上海匯易咨詢有限公司).
“Buyers are cautious,” Tu said. “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, might have led to the renewed imports, while optimism that profits from crushing soybeans in China will rise after the Lunar New Year might have helped spur them too, she said.
Reuters reported earlier that Chinese commercial importers purchased as much as seven cargoes of US soybeans this week for next month 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 barometer of the negotiations.
A US demand that China spell out how it plans to reach as much as US$50 billion in agricultural imports annually has become a sticking point in negotiations on a “phase one” trade deal, people familiar with the matter said.
China has also taken actions that could signal imports of US farm goods are in jeopardy if talks sour.
While China restarted purchases of some agricultural products as talks progressed, it is now delaying the unloading of US soybeans at its ports, the people said, which could slow down further purchases.
About 1.6 million tonnes of soybeans, mostly for state reserves, are being held up at China’s ports.
Local buyers have to pay a hefty deposit to customs before they can collect refunds on the 30 percent tit-for-tat tariffs, which China adopted because of the trade dispute. The deposits can cost as much as 60 million yuan (US$8.5 million) per cargo and unloading can take about 28 days.
Other commodities:
The world’s largest platinum producers on Friday sealed a three-year wage deal with South Africa’s biggest workers’ union. The new pay pact ends four months of negotiations between the Association of Mineworkers and Construction Union, and Anglo American Platinum Ltd, Impala Platinum Ltd and Sibanye Gold Ltd. The metal on Friday closed at US$895.66 an ounce, up 0.4 percent for the week.
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