Tensions between the U.S. and China continued as the U.S. demand for the closure of China’s Houston consulate was met with a retaliatory demand for the closure of the U.S.’s Chengdu consulate. Amidst the friction, China purchased a hefty volume of U.S. soybeans last week, with net 2020/21 purchases of 1.49 MMT.
All U.S. 2020/21 net sales last week totaled 84.5 million bushels, near a four-year high. U.S. exports sales topped 34 million bushels on Wednesday alone. While this all is supportive of the soybean market, China has stated that it will retaliate if it considers itself provoked further. This could pressure purchases of soybeans, adding to uncertainty that is putting the market on edge.