Skip to content

China Soy Buyers Walk Away From Brazilian Cargoes as Prices Soar

  • Roughly 10 cargoes have been canceled since last week: people
  • Move follows poor crush margins and spike in Brazilian premium

Some Chinese soybean processors are walking away from contracts to buy shipments from Brazil because a sudden jump in export prices from the Asian country’s biggest supplier has made crushing unprofitable. 

About 10 cargoes from the South American nation have been canceled since last week in a move known as a washout, according to people familiar with the matter. In a washout, no physical delivery is performed on a contract with the agreement of both buyer and seller.