China's Sinograin sells out soybean auction ahead of US shipments

By Ella Cao and Naveen Thukral

BEIJING/SINGAPORE, Jan 13 (Reuters) - China's state stockpiler Sinograin sold all 1.1 million metric tons of soybeans offered at its fourth auction since December on Tuesday, traders said, as it moves to draw down inventories ahead of incoming U.S. shipments.

The imported soybeans, from the 2022–2025 crops, were sold at an average price of 3,811 yuan ($546.29) per ton, with deliveries scheduled mainly for March and April, the sources said.

"Some crushing plants are a bit short on soybeans for March and April so they are buying from government auctions," said one oilseed trader in Beijing. "Overall, there is ample supply of beans in the market."

Sinograin held three auctions in December - its first sales in three months - after a trade truce with Washington spurred increased U.S. soybean purchases.

Across those auctions, about 900,000 tons were sold out of roughly 1.5 million tons offered, although both average prices and clearance rates fell with each round.

China's purchases from the current U.S. crop were estimated at between 8.5 million and nearly 10 million tons as of early last week, accounting for up to 80% of the 12 million tons that U.S. Treasury Secretary Scott Bessent said China had pledged to buy by the end of February.

Recent purchases by Sinograin have brought China closer to that target.

U.S. soybean shipments to China accelerated after months of stalled trade due to the tariff war, with Reuters reporting in December that at least six bulk vessels had been scheduled to load at Gulf Coast terminals.

Beijing does not publish official data on its grain and oilseed inventories, but traders estimate Sinograin is holding 40 million to 45 million tons of soybeans, enough to cover about five months of consumption.

($1 = 6.9762 yuan)