Commodity Blog

Commodity news, technical and fundamental analysis, market data on precious metals, energies, industrial metals, and soft commodities

Archives

Soybean Finishes Higher on Chinese Waivers, Taiwan Purchases

September 24, 2019 at 19:39 by Andrew Moran

Soybean futures finished the Tuesday trading session higher after reports of the Chinese government issuing waivers for US imports and new data that confirmed it is buying its second-largest quantity of soybeans in three months. The soybean market was also active after Taiwan confirmed that it is buying millions of tonnes of American corn and soybeans over the next three years.

November soybean futures rose $0.0075, or 0.08%, to $8.9325 per bushel at 19:19 GMT on Tuesday on the Chicago Board of Trade (CBoT). Soybean prices have rallied about 4% this month, supported by renewed trade negotiations between the world’s two largest economies. But the agricultural commodity is relatively flat on the year.

According to Bloomberg News, the Chinese government granted new waivers to many private and state-owned firms, exempting these outfits from retaliatory tariffs slapped on soybeans imported from the US. Citing sources close to the situation, the waivers would apply to up to three million tonnes of US soybeans, leading companies to take advantage by ordering at least 20 cargoes.

This comes as the US Department of Agriculture (USDA) reported that American soybeans exporters enjoyed sales totaling approximately 600,000 tonnes. Their customer? China. This ostensibly helped Midwestern farmers offset growing concerns about immense rainfall ruining the quality of crops right before the harvest.

Many analysts had been concerned about US-China trade relations after the delegation of Beijing representatives canceled its visit to American farms.

Speaking at the Indiana Statehouse, the Taiwan Feed Industry Association (TFIA) announced that it would be purchasing five million metric tons of corn and soybean until 2021. The value of this transaction is estimated to be as much as $1.1 billion.

Indiana Soybean Alliance Board Director Phil Ramsey was pleased by the news:

Just like any business, we need every customer that we can get, and we need to keep their business and increase their business. Taiwan is a good customer and a loyal customer. We’re glad that they’re buying our corn and soybeans. Just an exciting day to be with them.

In other agricultural markets, November corn futures added $0.025, or 0.67%, to $3.7575 per pound. November wheat futures slipped $0.0225, or 0.47%, to $4.8075 a bushel. December orange juice futures edged up 0.55 cents to 98.80 cents per pound.

If you have any questions and comments on the commodities today, use the form below to reply.

Leave a Reply

required
required  

Navigation

Menu