China Makes Big U.S. Soybean Purchase

China’s Sinograin bought almost 500,000 metric tons of soybeans from the U.S. for shipping in March or April. Two U.S. traders familiar with the purchase say Sinograin paid more for American supplies for its state reserves rather than buying cheaper beans from Brazil. China is the world’s number one soybean buyer and an important market for both the U.S. and Brazil. The industry is closely watching sales and the flow of trade to China ahead of President-elect Donald Trump’s inauguration on January 20. There is significant industry concern that another round of trade tariffs between the two nations would erode the value of U.S. soybeans. Soybean prices hit lows not seen in four years because of trade tensions, high stockpiles in the U.S., and a possible record harvest in Brazil. Reuters says Sinograin, China’s state-run grains trader and reserves manager, recently bought 750,000 tons for shipping from January through March.