Private exporters on Monday reported selling 120,000 mt of US soybeans for the next marketing year, which begins September 1, for delivery to Argentina, the US Department of Agriculture said Tuesday.
This was an unusual export sale as Argentina is the world's third largest producer of soybeans, behind just Brazil and US, and is the world's leading exporter of soybean meal, according to USDA data.
"The strong upward movement of the FOB premium for Argentine soy in recent weeks led to the appearance of an arbitrage opportunity with US soybeans," Emilce Terre, coordinator of economic studies at Rosario Stock Exchange, said.
"Import prices of the bean for the moment of harvest in the US were attractive for local crushers, who foresee less supply of domestic soybeans this year as a result of the drought," Terre added.
"Imports from the Northern Hemisphere are usually very specific, so they are not expected to become widespread this season," she added.
China's threat to impose tariffs on US soybean imports has sparked export sales of US soybeans as buyers try to acquire cargoes before the tariffs go into effect, sources said.
In addition, buyers are seeing US soybeans become more competitive with soybeans from Brazil.
Brazil is becoming the main source for China's needs -- it is the largest soybean importer -- and the US is becoming the main source for non-Chinese destinations.
Beside the large export sale of US soybeans to Argentina, export sellers on Monday also reported a "large sale" of 132,000 mt of US soybeans for delivery to China in the next marketing year, and 279,000 mt for delivery to unknown destinations in the current marketing year, according to USDA.
Private exporters on Friday reported selling 232,500 mt of US soybeans for delivery to unknown destinations in the current marketing year and on April 5 reported selling 130,632 mt in the current marketing year for delivery to Mexico, and 458,000 mt for delivery to unknown destinations, USDA data showed.
China -- as the world's largest soybean importer -- is expected to buy 97 million mt, or 64% of total world exports, in the current marketing year, according to USDA projections.
