China purchasing more soybeans from Russia, Brazil & Argentina

Dryness in the Black Sea region and delays in planting the next winter crop, particularly in Russia, have been dominating grain market discussions in recent weeks. But the lack of spring precipitation in South America will probably affect the grains in Brazil and Argentina.

The depreciation of the Brazilian Real against the US Dollar, higher futures prices, and insatiable Chinese demand mean that the Brazilian farmer is getting double the soybean price compared to a year ago. This is an enormous incentive to plant soybeans, and farmers don't care if they are planted late.

Soybean sales to China now total 17.5 million tonnes this season, compared to 3.9 million tonnes at the same time in 2019.

Chinese buyers are aware of the weather issues that Russia, Brazil, and Argentina are currently experiencing and what this could do to prices in the next six months. So, more likely, the high purchases of soybeans will continue throughout the following months or until the prices experience the growth for short supply.