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COFCO, China's state agricultural conglomerate, said it had recently bought a batch of U.S. soybeans amounting to millions of tonnes. The notice followed a period in which Chinese purchases of U.S. beans had ceased since July 2018 under retaliatory tariffs.
The purchase signals a restart of Chinese demand for U.S. beans.
A multi-million-tonne state purchase removes much of the export overhang from the record U.S. crop and supports U.S. soybean prices. Soybean meal prices may also firm as Chinese crushing demand for U.S. beans returns.
reuters.comFeb 2, 2019After 696 past bullish trade events, Soybeans moved a median +0.3% over 5 sessions (54% higher; middle half -1.3% to +1.9%), and +0.7% over 20.
After 342 past bullish trade events, Soybean Meal moved a median +0.1% over 5 sessions (51% higher; middle half -1.1% to +2.6%), and +0.6% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
