Reuters reports that the US Department of Agriculture informed of private sales to Chine of 68,000 tonnes of soybeans for the 2019/20 marketing year, the first such purchase by a private buyer since the trade war the US and China commenced more than a year ago.
Although in late 2018 US and China reached an agreement to pause their trade war and come up with a deal to give a boost in decreasing global growth, Eurasia marked the US-China tensions at the second place of the top risks the world will have to encounter in 2019.
Following the increased trade tensions between the two countries, the sale was the first new soybean purchase by China since a 544,000-tonne sale, that was announced in late June.
Moreover, the USDA reported that China purchased 66,800 tonnes of soybeans for 2018/19 delivery, including 62,000 tonnes that had previously been listed as headed for unknown destinations. Yet, China cancelled past purchases of 72,900 tonnes for the present market year.
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The prices for soybeans transmitted to Asia from the PNW are lower, in comparison to prices of beans that are shipped from rival exporter Brazil if China’s import tariffs are removed.
Also, Reuters adds that the purchase was significant, despite the fact that the 87 million tonnes of soybeans the world’s top buyer is planned to import over the 2019/20 season.
Chinese state-owned firms have purchased some 14 million tonnes of U.S. soy since an initial trade war truce was struck by U.S. President Donald Trump and China’s Xi Jinping in December, but less than 10 million tonnes have been shipped so far.