Date
22 April 2019
A file picture shows soybeans in a trailer at a farm in Illinois in the United States. China has made its second big purchase of US soy since the trade war truce with Washington. Photo: Reuters
A file picture shows soybeans in a trailer at a farm in Illinois in the United States. China has made its second big purchase of US soy since the trade war truce with Washington. Photo: Reuters

China makes second US soybean purchase after Trump-Xi truce

Chinese importers returned to the US soy market on Tuesday for their second round of purchases since the two countries agreed to a truce in their trade war, Reuters reports, citing traders and the US Soybean Export Council.

A trader was quoted as saying that Chinese state-owned firms bought 15 cargoes, or about 900,000 tons, for shipment from January to March, deals that would be worth more than US$300 million.

A spokeswoman for the US Soybean Export Council confirmed the renewed buying, but said it did not know the amount, the report said.

It marks the second big purchase of US soybean by China since the 90-day trade detente agreed to by US President Donald Trump and his Chinese counterpart, Xi Jinping, on Dec. 1.

Last week, state-run companies booked more than 1.5 million tons of US soybeans for shipment from January to March, the country’s first major U.S. soy purchases in six months.

The purchases suggest that China is making good on pledges to buy more American agricultural produce to help reduce the trade deficit that the US has with China. 

Trump told Reuters in an interview last week that China is buying a “tremendous amount” of US soybeans, but traders say the purchases since the Trump-Xi meeting have been slower than anticipated. 

The 25 percent tariff Beijing imposed on US soybeans in retaliation for duties Trump put on Chinese goods remains in effect, limiting interest from private soy importers in China.

China last year imported 31.7 million tons of American soybeans, nearly 60 percent of US export shipments, in deals valued at US$12.25 billion.

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RC

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