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The arrival of soybean vessel in China is increasing in August as compared to July. Most of the shipments came from Brazil, sources told S&P Global Platts.
About 158 vessels carrying 10.36 million mt of soybeans are expected to arrive in China in August, up from actual arrivals of 147 vessels seen in July, Beijing-based analytics firm Cofeed said.
In terms of volumes, August arrivals will be about 730,000 mt more than July deliveries, according to Cofeed data.
Soybean vessel arrivals in August are also set to eclipse August 2019 levels, when only 134 vessels carrying 8.62 million mt of beans arrived in China, Cofeed said.
Higher arrivals from Brazil were mostly driven by a weaker Brazilian real, which encouraged greater sales by farmers, while demand prospects from Chinese crushers continue to improve as the country reopened following the pandemic.
In the last 12 months, the Brazilian real has been losing value against the dollar, trading at 5.40 to the dollar on Aug. 13, down from 4.30 in the early part of the year.
A total of 65 vessels with 4.19 million of soybeans have sailed or are expected to sail to China in August, according to shipping line-up data from Brazil’s Williams agency.
China has been now looking to cover its demand for November-December, with most of September and October shipments covered, according to sources. This comes at a time when crushing margins in China have been improving, most recently on the account of a surge in soybean oil prices.
While private buyers in China were inquiring about US soybeans, the bulk of US bean purchases are now coming from state-owned companies.
China has been ramping up its purchases of US soybeans and other agricultural products in the past few weeks, with several large-volume flash sales reported by the US Department of Agriculture.
In an earnings conference late July, Archer Daniels Midland CEO Juan Luciano said China is expected to buy up to 13 million mt of soybeans from the US in the fourth quarter of 2020.
Source: Online/SZK
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