DOUBLE-CROSS: CHINA BUYING BOATLOADS OF SOYBEANS FROM BRAZIL AFTER US TRADE TALKS
‘I’ve not had any inquiries at all for US (shipments),’ says one US soybean exporter
China ramped up Soybean purchases from Brazil last week, despite President Trump showboating a potential $50 billion agriculture deal with Beijing.
Multiple traders told Reuters that Brazilian soybeans are more appealing to commercial importers, especially ones from China, who are looking for deep discounts.
As of last week, Beijing hasn’t lifted 25% tariffs on US soybeans nor granted new waivers to state-owned businesses, indicating that China isn’t ready to buy US agriculture products, as of late October.
China typically sources most of its soybeans from the US between October and January, then from South American countries in early 1Q. But this year, according to traders, as the trade war continues to escalate to the point of return, China is abandoning US markets despite positive sentiment from President Trump’s tweets.
U.S. vs. Brazil (Market share of China's total soybean imports) pic.twitter.com/8tYdlbWbrT
— Michael McDonough (@M_McDonough) October 9, 2019