Surprise, Surprise,
The Chinese stepped in and bought beans, and oil on this break. Chinese imports were 445 tmt, up 46% year on year.
China imported 4.03 mt of soybeans in October, up 6% year on year. Chinese soybean oil imports have surged 83% on the year. It looks like China is rumored to have bought 4 to 5 cargoes of beans from the Pacific North West in the past 3 days.
Chinese corn imports are up 385% from last year’s pace.
Over night, Japan bought some US wheat. US wheat remains too expensive for the mid-east due to expensive freight charges as opposed to other origins. If we continue to have demand increase from Japan, South Korea, and China, this should bolster prices.
Fundamentally, this is bullish news. Barring a world wide black swan even impacting financial markets, the fundamentals should remain friendly for US grain exports.
5-month lows in beans and 4 month lows in wheat shakes out the buyers, like a blue light special at K-mart.
CER