Sinograin, China's state-owned grain storage company, has bought nearly 500,000 metric tons of U.S. soybeans this week for delivery in March and April, A2 CNN writes.
According to foreign media, citing two US traders familiar with the deals, they have started paying more for US supplies for state reserves in the country.
China is the world's top buyer of soybeans and a crucial market for American and Brazilian farmers, who supply most of China's imports.
The industry is closely monitoring sales and trade flows to China ahead of the inauguration of President-elect Donald Trump on January 20, with concerns that another round of categorical tariffs on them would erode the value of US soybeans.
Soybean prices hit four-year lows this week on trade tensions and amid high US stocks and a looming record harvest in Brazil.
Sinograin's purchases this week follow deals China booked last week for about 750,000 tonnes for delivery from January to March. These are modest volumes for Sinograin, China's state-owned grain trader and manager of strategic reserves, which typically buys millions of tonnes at a time, traders said.
Sinograin prefers American beans when buying for storage because they are less prone to spoilage than those from Brazil, traders said.
Sinograin did not immediately respond to a request for comment on Thursday.
That would explain Sinograin paying more for US beans, rather than buying cheaper Brazilian beans that will be plentiful during the March-April delivery period, according to market analysts. (A2 Televizion)
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