A week that started with a post-WASDE sell-down found support in weather concerns and renewed Chinese buying of soybeans.
The soy complex seems set to remain the overall market leader for grain/oilseed futures in months ahead due to a tight U.S. balance sheet and potential tightness for global supply.
China made another purchase of soybeans for 2019/20, this time just short of 264,000 MT. Total outstanding sales to China were 17.6 MMT of soybeans at the start of the month. Strong prices for soybeans and dramatically better margins for imported beans could keep the wind behind these sales.
USDA is projecting 2.2 billion bushels of soybean exports this year, up 31 percent from 2019/20, when the trade war with China battered sales. Also in the news today, Brazil is again hinting that it may eliminate tariffs on imported corn and soybeans—another scenario that could mean some supplemental export demand.