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Analyst says unknown soybean buyer is likely China

Several commodity analysts believe China is buying a significant amount of soybeans from the U.S. right now.  One of them is Carl Babler with Atten Babler Risk Management. Babler says, “It’s pretty much the pattern that would indicate that it is China. Multiple purchases, large quantities, and also in this season where the availability or supply in South America is winding down a little bit.”

USDA reported unknown buyers purchasing 132-thousand metric tons of soybeans last Tuesday, 186-thousand tons last Wednesday, 120-thousand tons Thursday, and two separate sales of 258-thousand tons and 330-thousand tons on Friday.

Babler tells Brownfield a little more information will come out when the soybeans are shipped. “It’s kind of been the way they’ve done it in the past. Buy it as an unknown, and then if it’s uncovered when it’s shipped, fine. If not, it doesn’t matter, but just a little bit of a game they play, but it’s pretty obvious who’s buying in my mind.”

Babler says U.S. soybeans are priced competitively right now and supplies are shrinking in South America, so it makes sense that China would be buying from the U.S. now.