Soybean trade between Argentina and China restarts: 70,000 tons have already been sold
October 20, 2010
World Oil Magazine estimated that China bought 70,000 tons of soybean oil from Argentina after the ban on imports imposed by a trade dispute between the two countries.
The magazine said that “there are rumors that the actual purchases (from China to Argentina) have been higher,” adding “we are aware that only government-affiliated companies can buy Argentine soybean oil.”
The publication continued projecting that “in our preliminary estimates, we expect that Argentina exported 80,000 tons of soybean oil to China in November, and 100,000 tons in December.”
“China will be increasingly dependent on Argentine soybean oil, because the supplies available for export Brazilian products dwindle in Oct / Sept 2010/11, with greater domestic demand for the production of biodiesel,” concludes the note.
The resumption of bilateral trade could not come at a better time. On this day, the soybean price rose to $ 440 per tonne in the Chicago market.