China to auction more soybean reserves despite Argentine import stimulus

China’s national stockpiler has announced a new round of soybean reserve auction to be commenced next Friday, the first one in two weeks.

A half million tons of imported soybean reserves will be up for sale. The reserves consist of beans imported between 2019 and 2021.

Auctions will be held in Liaoning, Hebei, Henan, and Sichuan provinces.

It came at a time when Chinese importers are seeking offers for soybean cargoes from the US Gulf, PNW and Argentina as cash premiums fell slightly because of Argentina’s new round of “soy-dollar” program aimed to boost its domestic soybean demand and exports.

Auctions of soybean reserves in China will continue to put pressure on soybean prices in China which could reduce profitability of imports.