Importers Increase Soybean Purchases in US Dollars as China Ceases Operations | Real estate agencies

Until now, Chinese buyers accounted for only 17% of all planned purchases of the soybean crop in the United States, compared with an average of 60% over the last decade, according to the report. badysis.

• Brazilian soy is sold at a premium of up to US $ 1.50 a bushel as a long-term futures contract. soybeans in the United States fell 17% in six weeks to $ 8.50, the lowest level in nearly a decade.

The price difference has caused a rush to US soybeans importers from Mexico to Pakistan to Thailand, according to USDA data.

Even as China receded, advance purchases by all importers of the next US soybean crop increased by 27 percent in June, to 8 million tonnes, compared to the same period last year. last year.

Purchases are the latest example of how politics is pouring billions of dollars into global trade flows as US President Donald Trump is waging a trade war with China.

Beijing imposed US $ 34 billion worth of US goods (6), soy and cotton on cars and planes on Friday, in retaliation for US tariffs issued on the same day for Chinese goods of equal value .

The decline of US soybean purchases by China and the move of other countries to buy the US product in its place testify to a collective bet against any rapid resolution of escalating the trade war between the two largest economies in the world.

Even Brazil, the world's largest soybean exporter, is preparing to buy large quantities of soybeans to feed its domestic processors, as it sends more production to China at high prices, according to the Exporters Association . ANEC.

Brazil can import up to 1 million tons of American soybeans, with purchases increasing in October, said Lucas Trindade, executive badistant of Anec.

5 facts about the trade war between the United States and China The Brazilian soy mills that turn the culture into cooking oil and food for animals do not usually need soybeans in the US But it may be soon cheaper to import grain grown thousands of miles into the Midwest than to buy "This seems unreasonable, but it is possible that prices in Chicago are approaching $ 8 a bushel, "said Alessandro Reis, director of origination and logistics at CJ Selecta, a processor and distributor.

Soybeans in Brazil

Grain Dealers Dominating Soybean Markets – Of Which Archer Daniels Midland (ADM), Bunge and Cargill – are working to minimize the impact of the sudden drop in demand. hinesa, diverting charges to other places.