Analyst skeptical of additional Chinese soybean purchases
Chinese officials made a surprise announcement Thursday as they concluded trade talks with the U.S., saying they plan to buy five million tons of U.S. soybeans.
The soybean market has reacted positively, but market analyst Arlan Suderman with INTLFCStone says there are questions about what the Chinese really meant.
“Is that just talking about the five million metric tons they’ve already purchased over the last couple month, or is that an additional five million metric tons,” Suderman says. “At this point, I’m a little bit skeptical about it being an additional five million metric tons unless it’s spread out over a considerable amount of time.”
Suderman says with South America’s new-crop soybeans hitting the market, and China’s internal issues with African Swine Fever, it’s hard to see why the Chinese would need to buy more U.S. soybeans at this time.
AUDIO: Arlan Suderman