State stockpiler buys new crop soybeans from Argentina as reserve auction continues

China’s state-owned stockpiler Sinograin has purchased 2022/23 new crop soybeans from Argentina for shipments in the second quarter of 2023 as its reserve auction program in China continues.

At least one cargo was heard traded early Friday for May shipment from Argentina. More buying interest was rumored in the afternoon China time.

The buying is expected to be for replenishment of the national soybean reserve which Sinograin has been selling for several months.

Nearly 277,600 tons of soybean reserves were sold to private buyers on Friday at an average price of 5,342 yuan/ton ($737/ton). The offer size was 500,000 tons.

The stockpiler has been marketing 500,000 tons of national soybean reserve weekly since March this year but demand has been bleak due to high domestic price.