Soybeans rise as China increases cooking-oil imports from US
Monday, 14 June 2010
CHICAGO, June 13 (Bloomberg): Soybeans rose the most in a week after a government report showed increased US sales of vegetable oil to China, the world's largest consumer.
For the second straight day, US exporters reported selling 40,000 metric tonnes of soybean oil to China for delivery before the end of September, the US Department of Agriculture said. China halted shipments from Argentina, the world's biggest supplier, in April as part of a dispute over antidumping measures. China bought 51,621 tonnes of US soybean oil in 2009.
"China is buying soybean oil from the US to offset lost supplies from Argentina," said Greg Hunt, a market analyst for Fox Investments in Chicago. "This is a big change in world trade."
Soybean futures for November delivery jumped 14.5 cents, or 1.6 per cent, to $9.0925 a bushel on the Chicago Board of Trade, the biggest gain since June 3. The November contract replaced July futures as the most-active contract on July 9, when the price touched $8.8675, the lowest level since Oct. 6. The November contract rose 1 per cent this week, the most since the week ended April 23.
Almost all China's soybean oil has come from Argentina and Brazil, customs data show. Imports of crude bean-oil from the US have been mostly barred because of a procedural dispute on safety certification. The USDA said last week it may take steps to certify the safety of domestic soybean oil to spur exports to China.
Qingdao Port, the biggest in China's Shandong province, is congested by ships arriving to unload soybeans, a person with direct knowledge of the matter said. As many as nine more ships, each carrying about 60,000 metric tonnes of soybeans, are scheduled to unload this month, in addition to the two or three that have already been processed, said the person who declined to be identified because the information isn't public. Normally, there would be five, he said.
For the second straight day, US exporters reported selling 40,000 metric tonnes of soybean oil to China for delivery before the end of September, the US Department of Agriculture said. China halted shipments from Argentina, the world's biggest supplier, in April as part of a dispute over antidumping measures. China bought 51,621 tonnes of US soybean oil in 2009.
"China is buying soybean oil from the US to offset lost supplies from Argentina," said Greg Hunt, a market analyst for Fox Investments in Chicago. "This is a big change in world trade."
Soybean futures for November delivery jumped 14.5 cents, or 1.6 per cent, to $9.0925 a bushel on the Chicago Board of Trade, the biggest gain since June 3. The November contract replaced July futures as the most-active contract on July 9, when the price touched $8.8675, the lowest level since Oct. 6. The November contract rose 1 per cent this week, the most since the week ended April 23.
Almost all China's soybean oil has come from Argentina and Brazil, customs data show. Imports of crude bean-oil from the US have been mostly barred because of a procedural dispute on safety certification. The USDA said last week it may take steps to certify the safety of domestic soybean oil to spur exports to China.
Qingdao Port, the biggest in China's Shandong province, is congested by ships arriving to unload soybeans, a person with direct knowledge of the matter said. As many as nine more ships, each carrying about 60,000 metric tonnes of soybeans, are scheduled to unload this month, in addition to the two or three that have already been processed, said the person who declined to be identified because the information isn't public. Normally, there would be five, he said.