Payment credit is in doubt when purchasing new beans

Introduction: Chicago, Aug 25: traders said on Wednesday that China has started a large-scale rush to buy new season soybeans in the United States, but the volume of transactions is scarce; many Chinese soybean processors began to make up for the damage to payment credit and image caused by their early default At the beginning of this year, many soybean processors in China failed to fulfill the multi million dollar soybean purchase contract signed with South American countries, and American soybean exporters were unwilling to cooperate with them The next time you do business in China, you will ask buyers to pay more down payment, according to an official with an American grain company Dan Basse, an in-house grain analyst at agresource, said China's soybean processors had a contract dispute with Brazil between May and June In recent weeks, the only buyers of soybeans have been Sino US joint ventures Until the dispute is resolved, American soybean exporters dare to start cooperation with China China is the largest soybean importer in the world In the next quarter starting on September 1, without China's participation in the soybean market, the prospect of American soybean export is not clear In its report released on August 12, the U.S Department of Agriculture said that during the market year 2004 / 2005 (September 2004 August 2005), China's soybean imports from various channels will reach 23 million tons, slightly lower than the expected level of 24 million tons in July Grain traders and analysts predict that up to now, China's total imports have reached 18 million tons, only 5-6 million tons of us soybeans The United States is the third largest soybean exporter in the world after Brazil and Argentina It is rumored that this week a soybean processing enterprise in China bought two ships of American soybeans The company has close business relations with a large American company One trader confirmed that the Chinese joint venture had purchased one or two shipments of soybeans Another trader, who had just returned from a business visit to China, said the companies that refused to fulfill their soybean purchase contracts still had 2 million tons of soybeans in stock These companies hold soybean stocks and wait for prices to rise further This year, when the Chicago Board of trade soybean futures contract reached the position of $10 per bushel, its South American soybean stocks had been sold out On Wednesday, the Chicago Board of trade's November soybean futures contract closed at $6.12-1 / 2 The Bank of China has tightened the financial funds of soybean processors, requiring them to pay 40% - 50% down payment when purchasing goods However, there are few companies that have enough capital to advance the deposit In 2004 / 2005, American soybean exports to China were extremely rare Bill Nelson, grain analyst at A.G Edwards, said China's soybean imports are unlikely to reach 23 million tons this year, as a series of measures including credit crunch have been taken to cool the excessive growth of the economy However, in the next few years, the demand for soybeans in China's livestock industry will pick up At present, China has signed an import contract of 2.1 million tons of new season beans But the contract of 2 million tons was signed by our company during its visit to Chicago at the end of last year, just before our soybean processing industry refused to fulfill the South American soybean import contract.