Jim Young/Reuters
- China purchased more than 3 million metric tons of US soy this week, reports said.
- The move nods to a bigger appetite than expected for the commodity as top-producer Brazil faces headwinds.
- Reuters reported that Tuesday saw China make the biggest one-day purchase of US soybeans in months.
China this week purchased more than 3 million metric tons of American soy, good for the biggest single-day purchase in at least three months.
Reuters reported on Tuesday that traders said Chinese importers secured roughly 10 cargoes of soybeans, or about 600,000 metric tons, for shipments coming from the Gulf Coast and Pacific Northwest to be delivered between December and March.
Bloomberg on Friday reported that China had nailed down orders of 3 million metric tons on Tuesday and Wednesday. The volume suggests a larger than expected appetite for the grain.
"China is stocking up, buying more quantities than everyone thought," the head of trading at Cargill, the world's largest crop trader, told Bloomberg.
The big purchase of the key agricultural commodity from the US comes as Brazil, the world's biggest soy supplier, faces production obstacles from a bout of unfavorable weather that could potentially diminish crop yields.
US producers have also faced headwinds of their own amid shipping disruptions and competition with Brazil, which despite recent weather concerns ,ultimately harvested a record soy crop this year.
Per Reuters, the US Department of Agriculture forecasts a 12% year-over-year decline for US sales to China of the commodity. October sales to China were 35% lower compared to the same month last year.