Whether or not China follows through on promises to purchase more U.S. soybeans may be the biggest factor behind how high or low soybean futures go this year. Domestic need for soybean oil is partly offsetting the missing Chinese demand for underlying soybeans. "The U.S. [has] less available exportable supply amid the rapid expansion in crush capacity in response to supportive EPA policy driving record biofuel demand," says Mike Castle of StoneX in a note. Should Chinese demand return, then "we could be looking at a much tighter supply story given the increased competition in the domestic market," Castle says. Most-active CBOT soybean futures are up 0.5%. (kirk.maltais@wsj.com)
Dow Jones Newswires
Chinese Buying a Major Unknown for Soybean Prices — Market Talk
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Whether or not China follows through on promises to purchase more U.S. soybeans may be the biggest factor behind how high or low soybean futures go this year. Domestic need for soybean oil is partly offsetting the missing Chinese demand for underlying soybeans. "The U.S. [has] less available export…