Most purchases are private, with little data
on the volumes affected, but traders at Asian trading firms say they
are seeing a sharp rise in canceled contracts this year while other
buyers are demanding heavy discounts.
The
U.S. Department of Agriculture confirmed that China has canceled orders
for 517,000 metric tons of soybeans, used to make cooking oil, and
compares to imports of 63.4 million tons last year. South American
soybean contracts have also been canceled because of weak demand, says
trade journal Oil World.
The
cancellations are a big worry for the commodity markets as exporters
around the world had relied for years on China's insatiable appetite for
a wide range of raw ingredients. But now as jitters rise over the
health of the economy, the fallout is rippling through into agricultural commodities, just weeks after the price of copper and iron ore tumbled on worries they had been used in risky Chinese financing deals.
More evidence of a Chines Credit crunch implosion coming soon...Also it looks like XAU has put in another bottom here...Back up the truck
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