(Adds analyst’s comment in fourth paragraph.)
Nov. 16 (Bloomberg) -- China, the world’s biggest buyer of soybeans, bought about 600,000 metric tons from the U.S. to boost government stockpiles yesterday, three people with knowledge of the transactions said.
China Grain Reserves Corp., which manages state food reserves, bought the soybeans for delivery next year, the people said. Cheng Bingzhou, a spokesman for the company that is also known as Sinograin, didn’t answer a call to his mobile phone.
The purchase came after Sinograin was said to have bought 20,000 tons of soybean oil in the first week of this month. The company also bought about 1 million tons of corn, 700,000 to 800,000 tons of soybean oil and 2 million tons of soybeans in early October, analyst Tommy Xiao of Shanghai JC Intelligence Co. said Nov. 8.
“China’s buying probably stoked some interest in soybeans, which should help offset some of the negative macroeconomic news,” Cao Yanhui, analyst at Guxin Futures Co., said by phone from Dalian. “It looks like state reserves may have seen prices below $12 a bushel as a buying opportunity.”
Soybeans for January delivery lost as much as 1.2 percent to $11.865 a bushel on the Chicago Board of Trade. Futures have lost 2.5 percent this month on expectation of increased oilseed supply and concerns that a weakening global economy may sap demand.
Asian stocks fell for a second day and the euro sank to a five-week low against the dollar as Italian Prime Minister- designate Mario Monti prepared to form a new government to tame the debt crisis after the country’s 10-year bond yields resumed a climb above 7 percent.
China’s soybean imports in the 2011-2012 marketing year may rise 7 percent to 56 million tons from a year ago, the state- owned researcher China National Grain & Oils Information Center said yesterday. Still, China’s imports from Argentina and Brazil will rise, which may decrease U.S. exports to the Asian nation, Oil World said yesterday.
--William Bi. Editors: Richard Dobson, Jarrett Banks
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