China buys US soybeans after declaring ban on US agricultural products



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China bought a small volume of US soybeans last week after pledging to halt purchases of US agricultural products due to the escalating trade war between Washington and Beijing, revealed data Thursday. from the US Department of Agriculture.

The largest soybean importer in the world signed contracts from 9 to 15 August for 9,589 tonnes for delivery during the current marketing year and 66,000 tonnes, approximately one cargo, for the following year. according to the data.

On August 5, the Chinese Ministry of Commerce said that Chinese companies had stopped buying US agricultural products during the latest escalation of the trade war between the world's two largest economies.

"You have some purchases going on," said Arlan Suderman, chief commodity economist at INTL FCStone. "It's a bit of a surprise."

Last year, China imposed retaliatory duties on imports of US agricultural products, including soybeans and pork. Tariffs reduced US crop exports and prompted the Trump administration to compensate US farmers for $ 28 billion in two-year losses.

China said Thursday that it hoped the US would end its plans to impose new tariffs, adding that any new law would lead to further escalation.

China has been largely turning to South America for soy since the start of the trade war last year. US soybean sales to China in 2018 fell 74% from the previous year.

"Compared to what they bought, they virtually stopped, but some were successful," said Suderman.

Sales of 9,589 tonnes for delivery during the current marketing year are likely to be postponed for delivery the following year, which will begin on September 1, said Don Roose, president of US broker Iowa Commodities.

The cargo sold for delivery during the next marketing year could have been underway before Beijing said Chinese companies are suspending their purchases of US agricultural products, said Terry Reilly, Senior Commodity Analyst for Futures International.

"The government may have just given the green light to say, 'Let this one pass,' said Reilly.

"A cargo will not change the fact that they do not buy millions of tons of soy."

© 2019 Thomson / Reuters. All rights reserved.

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