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Analyst Suderman expects China’s aggressive buying to continue

China has been buying U.S. soybeans at a fairly brisk pace. And market analyst Arlan Suderman with StoneX thinks the Chinese will continue to be aggressive in their purchases.

“First of all, they need U.S. soybeans to get to the next Brazilian harvest,” Suderman says. “(Brazil’s) harvest supplies won’t be available, really, until February at the Chinese ports, at the earliest.”

Suderman says Chinese buyers are also driven by continued fears over the coronavirus.

“They’re afraid that the day will come in the future when they won’t be able to import because of coronavirus continuing to get worse around the world, and sy they’re trying to get those supplies in hand ahead of time.”

The Chinese are also taking advantage of relatively low soybean prices and a lower U.S. dollar.  DTN reports that China’s crush margins “are said to be great”, at over 41 dollars per ton in the Shandong province, a major hub for soybean processing.