Foreign Media: China's Soybean Inventory Reaches Record Levels, Demand for US Products Declines
The Chinese soybean market plays a key role in global agricultural trade, determining the trend of global prices and the strategies of major export countries. China's procurement decisions directly affect the economies of major producing countries and form a new supply and demand balance in the global market. In the context of trade conflicts and changes in the geopolitical landscape, supplier choices have become not only an economic factor but also a political element reflecting a country's priorities and interests on the international stage. Reuters pointed out that after record purchases from Latin America, there is almost no room for US soybeans in the Chinese market.
Although recent trade tensions have eased, Washington stated that Beijing has committed to resuming large-scale purchases, but after months of record imports, China faces a surplus of soybeans, which suppresses the prospects for US soybean exports. Traders and analysts warned that the large inventory in ports and government reserves, as well as weak processing profits, have limited Beijing's willingness to make new purchases.
The agency reminded that after last month's meeting in the US, Washington officials said China agreed to purchase 12 million tons of US soybeans by the end of the year and an additional 25 million tons annually over the next three years. Although China has suspended the imposition of retaliatory tariffs on US imports, it has not publicly confirmed these purchase plans. According to traders and analysts, state-owned purchasers such as COFCO Limited have only arranged small batches for December and January shipments.
This year, due to concerns about a prolonged Sino-US trade war potentially causing supply shortages, Chinese buyers significantly increased their purchases of soybeans from South America, leading to market oversupply.
According to data from Cofco Information, as of November 7, the soybean inventory at Chinese ports reached a record high of 10.3 million tons, an increase of 3.6 million tons compared to the same period last year. The inventory of processing companies was 7.5 million tons, the highest level since 2017.
A trader from an international oilseed processing company said, "Currently, China has almost no space to increase soybean imports. The inventory is huge, and demand from the feed industry is very weak." The market has not yet seen signs of state-owned importers such as COFCO and China National Grain Reserves Corporation rapidly resuming large-scale purchases as a gesture of goodwill after trade negotiations. However, Reuters pointed out that the possibility of state-owned enterprises making large purchases against the trend cannot be ruled out.
Original: www.toutiao.com/article/1848591676656970/
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