The acceleration in acquisitions responds to the higher margins obtained in the processing of soybeans to obtain vegetable oil, and the need to accumulate stock in the face of greater seasonal demand that generally occurs between the boreal autumn and the Chinese New Year, at the end of next January.
Most of the ships are scheduled for September and October, although they also run until the beginning of next year, according to reports.
During the first half of the year, Chinese imports of soybeans had fallen given the negative margins for their processing, which, likewise, prompted orders to now be larger to cover demand.
Chinese firms “are increasing their long position, to better protect themselves against changes in the margins and it is a clear sign that China is also hedging against some climatic inconvenience in Brazil such as another La Niña event,” said Victor Martins. , risk specialist at HedgePoint Global Markets.
Source: Ambito
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