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China Takes Advantage Of Soybean Plunge With Brian Grete

The Commstock Report Podcast

That $17 billion of additional beyond soybeans. Thanks for joining me on the The Commstock Report Podcast. I'm senior analyst Brian Grady. I want to talk about Chinese soybean demand, in particular what they've done over the past week or so plus here as we've seen a sharp drop in soybean prices tied primarily to improved weather conditions here in the United States.

So China took full advantage of the sharp break in prices that was weather driven as I mentioned and booked a lot more soybeans for new crop delivery. As you can see on the November soybean futures chart on July 24th we had a high of $12.56.5 intraday there.

In the overnight session here on August 3rd we had a low of $11.75 and a quarter and so that $0.81 plus cent drop during that time frame gave China a golden buying opportunity and we've seen that carry out with daily sales announcements. Since July 24th USDA has made daily sales announcements on four different days. July 27th, July 30th, July 31st and now August 3rd and you can see the levels there.

Some of them were to China were to China only. Some of them were to China only. Some were to unknown only and the grand total in that whole time frame from July 27th through August 3rd is more than 1.26, almost 1.27 million metric tons.

And there will be more daily sales announcements coming based on what the cash sources report. China was actively shopping for U.S. soybeans and making purchases last Friday through the weekend. And so there's probably going to be somewhere in the neighborhood of a million tons plus announced via daily sales in all likelihood.

China Takes Advantage Of Soybean Plunge With Brian Grete

Read the full transcript

The candid version is on a podcast,
not the earnings call.

China Takes Advantage Of Soybean Plunge With Brian Grete

Read the full transcript

The candid version is on a podcast, not the earnings call.

The candid version is on a podcast,
not the earnings call.