US soybean sales ramp up on strong demand from China

US soybean sales ramped up in the seven days ending 18 November, supported by robust purchases from China.

The US sold 1.56mn t of soybeans for the 2021-22 marketing year (September-August) in the latest reporting week, up by 13pc from 1.38mn t a week earlier. The increase was primarily driven by strong demand from Chinese buyers, at 882,500t. Mexico, Thailand and Egypt also actively secured the US products last week, with 168,200t, 148,600t and 117,300t of purchases recorded, respectively, data from the US Department of Agriculture show.

Chinese trading interests resumed on 11-18 November, tracking lower outright prices from the US, owing to a slowdown in freight rates. But market liquidity decreased last week compared with the previous seven-day period, with only two cargo bookings reported for US soybeans because of the Thanksgiving holiday.

US soybean exports were down by 4pc from the week prior to 2.25mn t, and were 18pc below the average of the previous four weeks.

China was the main export destination for US beans that week, with 1.41mn t shipped, followed by Thailand, Pakistan, Mexico and the Netherlands taking a combined 447,500t of US soybeans.

Soybean exports this year so far have reached 18.81mn t, down by 24pc from exports of 24.63mn t in 2020 over the same period.