US risks losing out to Brazil on China soybean sales

US soybean exporters risk missing out on billions of dollars worth of sales to China this year as trade talks drag on and buyers in the top oilseed importer lock in cargoes from Brazil for shipment during the key US marketing season, according to traders.

- NAVEEN THUKRAL ELLA CAO

Chinese importers have finished booking soybean cargoes for September, taking around 8 million metric tonnes, all from South America, three traders told Reuters.

For October, Chinese buyers have secured about 4 million tonnes — half of their expected requirement — also from South America, the traders said.

“China’s heavy Q3 soybean purchases suggest the industry has built up inventories ahead of potential Q4 supply risks,” said Wang Wenshen, an analyst at Sublime China Information.

Last year, Chinese oilseed importers bought around 7 million tonnes from the US for shipments during the two months.