Brazilian soybean import prices to China jump after demand coverage

The cost of importing Brazilian new crop soybeans to China jumped this week after large-size Chinese crushers contracted more than two dozen cargoes last week, adding a bullish sentiment to a rising market.

Cash premiums for March shipment of 2022/23 new crop soybeans from Brazil rose from 150 c/bu (against March CBOT soybean futures) at the beginning of last week to more than 160 c/bu versus the same futures contract.

This is the equivalent of a nearly $4/ton increase in a week.

Major crushers and trading houses bought at least 7-8 March cargoes last week, according to traders.

Moreover, crushers also bought more than 15 cargoes of January 2023 shipments from the US last week.

While the price of forward shipments in the first quarter of 2023 has risen, the spot price of soybeans in China is largely stable as a large volume of cargoes is currently being cleared by Chinese customs in December.