Chinese state-owned industries returned to buy US beans on Tuesday, with at least five cargoes being snapped up off both the Pacific Northwest ports and in the US Gulf, market sources said, with some estimates as high as 14 cargoes have been bought.
At least three cargoes were purchased out of Oregon with a further two bought from the US Gulf, according to sources, who refused to confirm the price paid.
The shipments are thought to be for the first quarter of next year.
“I heard 14, mostly [from the] US Gulf,” said one source at a trading house.
“[They are] still bidding,” said a second source at a brokerage.
Last week, Chinese state-owned companies Sinograin and Cofco purchased at least 1.43 million mt of soybeans after a five-month boycott of beans, although market estimates suggest that the true figure is a lot higher.
In July, China slapped a 25% tax on US soybean imports as part of a tit-for-tat trade war between world’s two biggest economies, effectively bringing a halt to trade between the two nations.
However, earlier this month China promised to buy US agricultural products in a bid to ease tensions between the two countries.
Soybean exports are worth $12 billion a year to the US economy.