A Bloomberg News survey shows soybean buyers in China, the world’s biggest consumer, are increasing imports as demand for animal feed rises and prices fall.
During the week of July 14, China reportedly bought 2 million metric tons of soybeans after a price decline to the lowest in almost four years, Bloomberg said.
China’s imports will help absorb the huge global inventory and slow the slide in prices. The U.S. Department of Agriculture (USDA) projects a record worldwide inventory in 2015 of 85.31 million tons. The U.S. soybean crop is in the best shape at this time of year since 1994, reports said.
Soybeans for November delivery on the Chicago Board of Trade (CBOT) fell 0.5 percent to $10.665 per bushel on July 22. U.S. exporters reported combined sales of 1.768 million tons for the week of July 14, including 1.064 million tons to China. The USDA reported U.S. exporters also sold 120,000 tons to China for delivery before August 31.