China's Strategic Soybean Auctions: Clearing Stockpiles Ahead of U.S. Arrivals

Sinograin, China’s state stockpiler, has sold all 1.1 million metric tons of soybeans at its fourth auction, aligning with increased U.S. shipments. Soybean prices averaged 3,811 yuan per ton with shipments due in March and April. The auctions aim to decrease inventories from 2022–2025 crops ahead of the U.S. imports.

Sinograin, China's state stockpiler, successfully auctioned 1.1 million metric tons of soybeans on Tuesday, marking its fourth sale since December. This move aims to manage inventory levels before the arrival of substantial U.S. shipments, according to traders.

The sold soybeans, harvested from the 2022–2025 crops, fetched an average price of 3,811 yuan ($546.29) per ton. Deliveries are expected in March and April. A trader mentioned that while some crushing plants face a temporary shortfall for those months, the market remains well-supplied overall.

These auctions come in the wake of a trade agreement that increased U.S. purchases, with previous auctions selling 900,000 tons out of 1.5 million offered. China's recent acquisitions from the U.S. have significantly contributed towards meeting the pledged purchase target of 12 million tons by February's end, as confirmed by U.S. Treasury Secretary Scott Bessent.

(With inputs from agencies.)