Source: Bloomberg
Author: Isis Almeida, Jennifer Jacobs, Jenny Leonard
China has another "soybean diplomacy". Before the meeting between the heads of state and the United States of China and the United States, the world's second largest economy seemed to be closer to the United States.
The world's largest soybean imported national country has purchased more than 3 million tons of American soybean this week. This level surprised the market.People familiar with the matter said that next week, Biden and Xi Jinping intend to meet in San Francisco, this was a move to release goodwill.People familiar with the matter demanded anonymous because of the government's decision.
This is not the first time that China has used soybean trade to play geopolitical influence.In the trade war during Donald Trump, Beijing purchased and stopped buying American oilsees many times.However, China has recently been purchasing Brazilian supply with cheaper prices.
As China seeks close relationship with the United States -the two countries have recently held many talks, and soybeans have become the focus again.Just last month, Chinese -funded grain companies, including COFCO International and China Grain Reserve Group, and crop traders such as Achemine, Bangji, and Cargill, signed 11 copies of the forums in AiwaThe agreement is the first time since the start of the Sino -US trade dispute in Trump.
Stephen Nicholson, the global strategist of the Dutch Cooperation Bank, said that in the past six months, there must be many "shuttle diplomacy" between the two countries, and Bayeng will meet with Xi Jinping next week.
A spokesman for the Chinese Embassy in Washington did not comment immediately.The White House will not comment.
The latest order of the fact that the market is unexpected by the market is dominated by the central grain, which will help increase China's inventory.In addition, US Treasury Secretary Jennte Yellen also held a meeting with the Vice Premier of the Chinese State Council this week. A few days later, US President Biden and Chinese President Xi Jinping will hold a summit on the APEC forum on November 15.
The price of American soybeans purchased by China is more expensive than Brazil, and the processing profit margin is very low.Alex Sanfeliu, the global trade director of the world's largest agricultural product trader, said that China's procurement has exceeded domestic demand and indicates that China is seeking to establish inventory.
"Why China's grain is much higher than Brazil's soybean is much higher than the price procurement, and the Chinese leader's visit to the United States is the only logical explanation," said San Louis's independent commodity trader Ken Morrison."Chinese grain plays a dual role; they operate soybean squeezing business, and also reserve inventory for the government. Like other places, the bean squeezing industry is also very fierce in China. Squeezing companies generally do not pay higher than the market price than the market price.Price. "
Purchase factors
Dan Basse, president of the Chicago Consulting Company Agresource Co., headquarters, said that although there is a little political factors in procurement, American soybeans are also more suitable for storage than Brazil, because Brazilian soybean water content is usually too high, and the oil content is relatively high.high.
Some people worry about the weather in Brazil and the long line lined up in the country.Chris Robinson, managing director of agriculture and commodity commodity of Chicago TJM Institutional Services, said the decline in prices in the United States may also attract buyers.He said that China obviously regards the six -month low as an opportunity.
Two of them said that China also sought closer relationship with the Biden government before the Presidential election in 2024.People familiar with the matter said that in the case of the Chinese economy not as strong as before during the trade war, there were some concerns about the possibility of Trump's possibility.
"The Chinese are pragmatic. They know that in the long run, the United States cannot fall into a very valuable trading partner," said Nicholson of the Dutch Cooperation Bank.
