Chinese buyers may default on further €650m soybean cargo to avoid losses

Chinese buyers may default on a further 1.2 million metric tons (1.32 million tons) of soybeans worth about $900m (€650m) being shipped from the US and South America, to avoid incurring huge losses in a depressed local market, the country’s top soy buyer said.

The hard-line approach taken by Chinese buyers raises the possibility that more cargoes could be dumped into the market, after buyers walked away from at least 500,000 tonnes of shipments in recent weeks.

Trading firms mostly clustered in China’s Shandong province have refused to make payments for about 20 shipments, said Shao Guorui, general manager of Shandong Sunrise Group.