After some speculation in the market, the USDA confirmed a major new purchase of soybeans from China in the US market. There were 1,199.0 million tons of the 2018/19 harvest.
Sales made on the same day, for the same destination and with a volume equal to or greater than 100 thousand tons, must be reported to the department. The note was released on the afternoon of Wednesday, Dec. 19th.
The market has been speculating about these purchases since yesterday, confirmed the operation, but without giving great details, which came only today. The market reaction, however, was quite limited, as traders were already waiting for it and volumes continue to “disappoint” players.
Quotes, which started the day with stability, around 14:15 (Brasilia time), lost more than 6 points among the most traded contracts, with January / 9 worth US $ 9.01 and May / 19, US $ 9.27 per bushel.
“Soybeans have spent the last 13 sessions within a 20-cent oscillation band.” The answer is simple: a US deal with China, and among the less predictable answers include the Fed’s decision “said Al Kluis, an analyst at Kluis Advisors, at Agriculture.com.” We are looking forward to the next step, “he said.