Pathfinder
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Chinese buyers cancel soybean shipments in Latin America due to the profit impact of poor demand
March 14, 2014 Friday 10:42 BJT
Reuters Singapore / Beijing March 13 - two industry sources said, China soybean importers canceled up to 600,000 tons of soybeans in South America from March to May shipment cargo, due to bird flu and China crush margins are negative, limiting needs.
The source said that buyers are negotiated with suppliers to postpone or cancel more cargo.
"At present, China has a large supply of soybeans," said a trader in Singapore to attend an industry conference in the local space representation. "They canceled the Panamax cargo of 10 batches, 30 batches wish to cancel cargo."
God oilseed trading company Shanghai Kai Investment Company Investment Manager Gao Yan Bin said that as crush margins are negative, so being negotiated postponed several groups of soybean shipments problems.
Gao Yan Bin confirmed that Chinese buyers canceled from 500,000 to 600,000 tons of soybean in Brazil cargo.
"Livestock raising demand is very weak, the impact of bird flu in poultry demand, pork replenish reserves low," said Gao Yan Bin. "Because they expected a loss in 400-500 yuan per ton (U.S. $ 65-82), so they no longer need these cargoes."
Market watchers have long expected that China will cancel some U.S. purchase agreement, Yin Baxi and Argentina supply low price.
But on the part of the Brazilian market has not digested the expected orders may be canceled. "This will bearish South American soybean spot prices," the first trader said.
Chinese imports for feed grains (mainly corn and soybean meal) decreased due to decline in meat prices, and because of bird flu. (End)
(Compiled Li Shuang revision crown in)
zhttp://cn.reuters.com/article/chinaNews/idCNCNEA2D03320140314
Chinese buyers cancel soybean shipments in Latin America due to the profit impact of poor demand
March 14, 2014 Friday 10:42 BJT
Reuters Singapore / Beijing March 13 - two industry sources said, China soybean importers canceled up to 600,000 tons of soybeans in South America from March to May shipment cargo, due to bird flu and China crush margins are negative, limiting needs.
The source said that buyers are negotiated with suppliers to postpone or cancel more cargo.
"At present, China has a large supply of soybeans," said a trader in Singapore to attend an industry conference in the local space representation. "They canceled the Panamax cargo of 10 batches, 30 batches wish to cancel cargo."
God oilseed trading company Shanghai Kai Investment Company Investment Manager Gao Yan Bin said that as crush margins are negative, so being negotiated postponed several groups of soybean shipments problems.
Gao Yan Bin confirmed that Chinese buyers canceled from 500,000 to 600,000 tons of soybean in Brazil cargo.
"Livestock raising demand is very weak, the impact of bird flu in poultry demand, pork replenish reserves low," said Gao Yan Bin. "Because they expected a loss in 400-500 yuan per ton (U.S. $ 65-82), so they no longer need these cargoes."
Market watchers have long expected that China will cancel some U.S. purchase agreement, Yin Baxi and Argentina supply low price.
But on the part of the Brazilian market has not digested the expected orders may be canceled. "This will bearish South American soybean spot prices," the first trader said.
Chinese imports for feed grains (mainly corn and soybean meal) decreased due to decline in meat prices, and because of bird flu. (End)
(Compiled Li Shuang revision crown in)
zhttp://cn.reuters.com/article/chinaNews/idCNCNEA2D03320140314