Expecting strong demand in China, the company orders South American soybeans

Introduction: FWN Chicago, Nov 19 news: on Monday, several international trading companies began to order forward contracts for South American soybeans at the beginning of this month to export to China in the calendar year 2002 due to strong demand for soybeans imports expected from China, according to local analysts According to sources in Brazil, new beans are being ordered quickly, with about a quarter of them already ordered a month ago, three times the regular pace At present, Brazil's Chen bean supply is very tight, leading to price increases Last week, in Paranagua, Brazil's largest soybean export port, the agreed price of oilseeds was $5.30 per bushel, about $1 higher than the recent contract price of the Chicago Board of trade But Chinese sources say international trading companies have so far been reluctant to pay a premium for South American soybean supplies, particularly for Brazil Some expect this because Brazil has not yet allowed the production of genetically modified soybeans China is not keen on genetically modified crops, but so far there are no specific details on the import policy of genetically modified organisms, which is expected to be released in a few weeks Uncertainty about regulations and policies, and speculation about China's desire to protect domestic soybean prices and soybean production, led to China's failure to order U.S soybeans throughout the summer, which led to the stagnation of U.S exports at the beginning of the market year Although the U.S Department of Agriculture estimates that China will import 14 million tons of soybeans in 2001 / 02, of which the U.S accounts for about 1 / 2, some analysts expect China's imports of soybeans to fall to 12 to 13 million tons They also argue that South America may replace many of America's businesses in terms of exports But at the same time, local reports in China show that U.S soybeans ships that have recently arrived in China do not have many problems unloading In the past few days, a ship has actually docked at a port in Shenzhen, Guangdong Province, China So far, China has imported 1044000 tons of us soybeans, down 7.6% from the previous year, according to the US Department of agriculture