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China buying canola, soyabeans after New Year

SYDNEY: China's recent purchases of Australian canola and US soyabeans are leading a selective commodities-buying splurge by the Asian giant after its lunar New Year festive season, traders said on Tuesday.

In recent weeks China has bought as much as one million tonnes of US soyabeans and 200,000 tonnes of Australian canola, trade sources said. And China's chequebook may not yet be closed.

"The Chinese are showing quite an appetite (for canola) so long as the price is right," a senior Australian trader with a major grains export house said. "I think we can," he said when asked if Australia can expect China to buy more.

China has also been dipping into purchases of Indian soyameal.

China's post New Year appetite for bulk imports has so far been more directed toward agricultural commodities than metals, Singapore traders say.

Tokyo metals traders also say that while Chinese buyers have been inquiring about purchasing copper, sales do not appear to have been consummated in Japan. Chinese interest in aluminium has been slow, they say.

Chinese buying sent Chicago bean prices soaring at the end of last week on trade talk that China may have bought as much as 850,000 to one million tonnes of soyabeans from the US over the past seven to 10 days.

But some US exporters say the amount was likely to be closer to 500,000 tonnes to 600,000 tonnes.

AUSTRALIAN CANOLA SALES ESTIMATES SWELL

In Australia, the estimates of how much local canola China may have bought are growing bigger by the day.

Sales of Australian canola last week and the week before totalled as much as four shipments from Australia's east coast as well as at least one shipment from its west, one well-placed source with a leading export house said.

This would put total Australian canola sales to China in the past two weeks at 150,000 tonnes to 200,000 tonnes, greater than the 100,000 tonnes which some traders estimated on Monday.

This trader expected Australia to score more canola sales to China -- possibly imminently -- but depending on price.

Chinese purchases were showing the same seasonal pattern as last year as the country came out of its festive season but still waited for its domestic canola harvest in May/June, an Australian trading source said.

The question was less how much more canola China might buy than how much more Australia had to sell, he said.

"Australian supplies are starting to dwindle now," he said.

This now leaves Australian exporters playing a guarded game on exactly how much more canola they have available to supply.

Competition between Australian and Canadian canola for the Chinese has so far favoured Australia on price competitiveness, but whether Australia could supply enough canola to satisfy China's demand was presently unclear, one trader said.

CHINA BUYS INDIAN MEAL

As Reuters reported from Singapore on Monday, China has also been in the market for Indian soyameal at low prices.

Traders said China's Indian purchases were for a cargo of 20,000 tonnes and another of 15,000 tonnes of soyameal for prompt to March shipments, at US$202 per tonne C&F, China for one cargo and US$203 for another.

Low prices for the Indian soyameal, which were offered at $210-$213 per tonne, are seen helping clinch the sales.

Singapore traders estimate 14-15 panamax cargoes of US soyabeans had been traded for February to March shipments for $215-$219 per tonne, C&F China.

"This is meal-driven demand for beans. Meal prices are shooting up to the roof," said one trader. "It's no longer as gloomy as last year." -Reuters