A survey from the China National Grains and Oils Information Centre indicates that China import demand is likely to slow over the near-term as the market absorbs big US supply flow for the next several months.
On the other hand, there is also news out of China that the country will start stockpiling soybeans purchased from producers beginning December 1st and lasting through April. This is a similar program to last year and China will pay producers 1% higher than last year to secure inventory.
In addition, the European Union is expected to approve the import of GMO's in the next few days which could cause a resumption of large-scale imports of US soybeans and meal as early as December. European buying may help offset some of the slowdown in China buying of US soybeans as traders believe China has already booked US soybeans through March and future needs would be met by South America.
Oil stocks were below expectations at 2.727 billion pounds which may have helped support the oil market.
For soybeans (Grain Weekly Analysis November 25, 2009), the market seems to have mostly digested the harvest pressure and is poised to see some seasonal strength.
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