USDA confirms 612,000 t soybean sales to China as Gulf barge bids firm

what happened

Reuters reported that US Gulf barge basis bids for soybeans strengthened on Tuesday, as exporters responded to continued Chinese buying. The USDA said it had confirmed private sales of 612,000 metric tons of American soybeans to China, the fifth such announcement in five consecutive business days. Traders also pointed to talk of more purchases, yet November soybean futures on the Chicago Board of Trade slipped to their weakest level since late August.

Harvest progress picked up on favorable weather across the Midwest. By Sunday, 64% of soybeans were harvested, versus 46% a week earlier, while corn reached 44% from 33%. Farmers preferred to sell soybeans and keep corn in storage, brokers said.

Barge pricing showed CIF Gulf soybeans loaded in October bid at 99 cents over November CBOT futures, 4 cents higher than Monday. Barges loading in the second half of October traded at 104 cents over futures. FOB premiums for November Gulf loadings held near 120 cents. Freight eased, with empty barges at St. Louis offered at 650% of tariff, down from 700% a day earlier, while river levels fell in some spots due to dry weather.

why it matters

Chinese purchases underpin export demand and barge basis, but futures falling to late-August lows show that sales alone have not lifted prices on the board. Lower barge freight reduces export costs, while falling river levels could limit barge capacity if the dryness continues. Soybean and corn price moves in the coming weeks will depend on harvest pace and export shipments.

market impact

Soybean futures: Chinese purchases support export demand, yet futures sit near late-August lows

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