By Ryan Hanrahan
Bloomberg’s Ben Westcott reported that “China’s purchases of American soybeans appear to have stalled, less than two weeks after the US touted a wide-ranging trade truce that signaled thawing relations between the world’s two biggest economies.”
“After a flurry of orders late last month — which were the first of this season — Chinese imports of US cargoes seem to have faltered, according to traders who asked not to be identified discussing confidential information. They said they were not aware of new shipments,” Westcott reported. “The pause is fueling uncertainty over whether the biggest consumer of American soybeans will import as much as US President Donald Trump’s administration claims to expect.”
“Washington said Beijing had pledged to buy 12 million tons of soybeans by the end of this year, followed by 25 million tons annually over the next three years. China has yet to confirm the specific purchase commitments mentioned by Trump’s team, but Beijing has reduced tariffs on American soybeans and lifted import bans on three American exporters, including CHS Inc., reciprocating similar conciliatory actions from the US,” Westcott reported.
“‘Within the industry many view the reported commitment by China to purchase 12 million tons of US soybeans to be more of a diplomatic gesture than a firm trade deal,’ said Kang Wei Cheang, an agricultural broker at StoneX Group Inc. in Singapore,” Westcott reported. “China has spent the past few months buying massive amounts of South American beans in a bid to diversify its sources. Therefore, Chinese demand is expected to be lower in the coming months regardless of any trade deal with the US, according to Vitor Pistoia, senior grains and oilseeds analyst at Rabobank.”
Source : illinois.edu