By Ryan Hanrahan
Reuters’ Naveen Thukral and Ella Cao reported that “Chinese buyers booked at least 10 cargoes of Argentine soybeans after Buenos Aires on Monday scrapped grain export taxes, three traders said on Tuesday, dealing another setback to U.S. farmers already shut out of their top market and hit by low prices.”
“Argentina’s temporary tax move boosts the competitiveness of its soybeans, prompting traders to secure cargoes for fourth-quarter inventories in China, a period usually dominated by U.S. shipments but now clouded by Washington’s trade war with Beijing,” Thukral and Cao reported. “The Panamax-sized shipments of 65,000 metric tons each are scheduled for November, with CNF (cost and freight) prices quoted at a premium of $2.15-$2.30 per bushel to the Chicago Board of Trade (CBOT) November soybean contract, two traders with direct knowledge of the matter said.”
“One of the traders said Chinese buyers had booked 15 cargoes,” Thukral and Cao reported. “The deals are a fresh blow for U.S. farmers, who are missing out on billions of dollars of soybean sales to China halfway through their prime marketing season as unresolved trade talks freeze exports and rival South American suppliers led by Brazil step in to fill the gap, traders and analysts have said.”
“‘These deals were done last night after Argentina’s decision on export tax,’ said one of the traders, declining to be identified as they were not authorised to speak with media,” Thukral and Cao reported. “‘It clearly means that China doesn’t need U.S. beans.’”
Source : illinois.edu