A drop in soybean prices risks becoming exaggerated as the U.S. government’s partial shutdown leaves the market without official updates on Chinese buying of the oilseed, according to Oil World.
Importers in China might step up purchases of U.S. soybeans to capitalize on lower prices as they return from a national holiday this week, the Hamburg-based researcher wrote in a report today. Any increase may take place “largely unnoticed” by the market, Oil World wrote.
“There is a risk that the downtrend of soybean prices is overdone as the potentially bullish U.S. soybean export sales and shipments are not publicized for the time being,” the researcher wrote.
Soybeans for delivery in November fell 1.9 percent last week on the Chicago Board of Trade. The U.S. Department of Agriculture didn’t publish a regular export-sales report last week and isn’t providing daily announcements on sizable shipments because it has been closed since Oct. 1 as part of the shutdown, suspending crop and livestock reports.
China is the world’s biggest soybean importer and the U.S. is set to be this year’s second-largest producer after Brazil. The White House and Republican lawmakers are deadlocked over extending the government’s debt limit to avoid a default.
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