U.S. Officials Call Grain Companies For Proof China Is Buying Soybeans

December 7, 2018 02:12 PM
 
Recent trade discussions yielded good news for U.S. soybean growers when at least two Chinese grain buyers were reportedly given the green light to purchase five million tons of soybeans.

Recent trade discussions yielded good news for U.S. soybean growers when at least two Chinese grain buyers were reportedly given the green light to purchase five million tons of soybeans. Today, however, U.S. officials are asking for proof of those purchases.

Earlier reports indicated China would begin purchasing soybeans from the U.S. ‘immediately,’ but experts say that’s a strong word and it’ll likely take a little more time. But, U.S. officials aren’t waiting around for China to change its mind.

“We were told this morning in no uncertain terms, a top U.S. official [from a source who asked to remain anonymous] involved in the U.S.-China talks was calling some U.S. grain companies to ask if China was purchasing grain,” says Jim Wiesmeyer, Pro Farmer Washington Analyst to John Herath on the DC Signal to Noise Podcast.

“[The official] fully expects, out of the White House, that China is very soon, rather than immediately, going to execute some purchases.”

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Grain traders want proof that China will follow through on commitments, too.

“This way [they] don’t buy the rumor, [they] buy the fact,” Wiesmeyer says. “You’ll see a pop up [in soybean prices] if we get the confirmation of the purchases but they’re also going to want to see what crop years is going—new crop or purchases or old crop.”

The markets saw a jump in the right direction early this week after trade discussions were publicized, but Wiesmeyer says the market won’t be confident until ships hit the water.

“There are some additional things we need to fill in the blanks [such as if it’s going to be new or old crop],” he adds. “Traders want to see 100% proof of an announcement on purchases.”

Stay tuned for more updates on Agweb.com to see if and when those shipments will hit the water.

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Comments

 
Spell Check

Douglas Street
Newton, KS
12/8/2018 11:26 AM
 

  anytime you produce for the export market, you put yourself at the mercy of some fickle politician, with an ink pen!

 
 
Dave
Auburn, IN
12/9/2018 06:49 AM
 

  Jay, very good words from you, wish it was that easy, the world and our country has changed for the worst, too bad the liberal left has got control of the democrats party, just look at their actions, the last two years it's all about taking down the president, resist, resist, bring illegals in, damn the americans, abortion, hate white men , hate white people, hate police, kill police, open borders, no morals , violence, tried to kill republicans at a baseball game, harrast republicans at restaurants, on and on, we are becoming like the mideast, Just like the muslims, hatred at each other, fighting , war, the younger generation has no morals, no values, being taught evil ideas in schools and college, if the liberal left continues to control the democrats party , we are doomed , sorry about the truth, we ether stand up and fight for our country or we lose what America stood for

 
 
Rick
Jonesboro, AR
12/9/2018 08:22 AM
 

  Very well said by Dave and 100% spot on!

 
 
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