Beans lower despite China buy

The soybean market is lower today despite details of the first purchase of U.S. soybeans by China in months. Mark Schultz with Northstar Commodity in Minneapolis says while 40 million bushels is a significant buy, it doesn’t put much of a dent in the 955 million-bushel projected carryout, “The bottom line is simply this – is that we still have a HUGE supply of beans globally and we’ve got a potential bear crop still coming out of South America.”

For farmers looking for a rally now that China is back in the market, Schultz tells Brownfield it might take some bullish weather news to turn soybeans higher, “If I can get into a drier trend in Brazil, I think that would be hopefully a little bit more positive. But anything that comes back into a $9.45 on March soybeans, I think, is a place that a person just has to look at making some type of a sale here.” China purchased 1.1 million tons of U.S. soybeans, while the trade was expecting sales of 5 to 8 million tons.

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