Spencer, IA: (Jan. 19, 2012) - A rainy start to the Brazilian soybean harvest and the recent downturn in U.S. prices has revived China’s demand for U.S. soybeans. Analysts say it may be a last gasp for U.S. exporters before South American supplies flood the international market.

 

Last week China bought 10 cargos of U.S. soybeans, some 600,000 tons, and this week booked another ten cargoes, the largest weekly purchases since late November.

 

Dan Basse, an analyst with Ag Resource Company, said some of the sales were likely “insurance purchases” by China to cover any potential shortfall in the Brazilian harvest.

 

U.S. soybean sales to China have been lackluster much of this season as a bumper crop in South America last year and prospects for a record crop there this year shortened the traditional post-harvest export dominance for the United States.

 

The spike in demand may be short-lived as traders in China will be on holiday next week for the Lunar New Year.