Tags: China | Trump Administration | chinese | buyers | soy | tariff

Chinese Buyers Return to Market for U.S. Soy After Tariff Waivers Granted

Chinese Buyers Return to Market for U.S. Soy After Tariff Waivers Granted
(Alf Ribeiro/Dreamstime)

Wednesday, 23 October 2019 09:23 AM

Chinese buyers are back in the market for American soybeans after crushers in the Asian nation were granted a new round of tariff waivers, according to people familiar with the matter.

Soybean processors in China were granted permission to buy another 10 million metric tons of U.S. supplies without retaliatory duties, said the people, who asked not to be identified because the information is private. This would be a third round of waivers, with about 5 million tons granted previously.

Chinese buyers have bought at least three cargoes, or about 190,000 tons, as they seek supplies for late this year and early next, the people said. The bids mark a return to the American market after Chinese buyers recently picked up cargoes in Brazil, where prices have been more attractive to Asian crushers already hurt by slower feed demand due to the spread of African swine fever.

Chicago soybean futures traded at $9.51 a bushel on Wednesday after rising to $9.59 a day earlier, the highest intraday level in a week. China’s Ministry of Commerce didn’t respond to a fax seeking comment.

President Donald Trump said China has indicated that negotiations over an initial trade deal are advancing, raising expectations that the two sides could sign an agreement at a meeting next month in Chile. A phase-one accord represents a pause in the 18-month trade war that has hurt the world’s largest economies.

“They have started the buying,” Trump said Monday during a Cabinet meeting at the White House, referring to Chinese purchases of U.S. agriculture products that the president has pushed for as part of a deal. “I want more.”

Waivers were issued to state-owned and private crushers as well as multinational processors based in China, the people said. While some traders remained optimistic about the sales, others pointed to lower prices in Brazil.

“China will buy where the cheapest price is,” said Joe Davis, a director at brokerage Futures International in Chicago. “They have plenty of time on the new tariff-free waivers so I would not expect it all at once in the U.S. with the market at the highest levels since mid-June. These private buyers will wait to see if prices fall.”

© Copyright 2021 Bloomberg News. All rights reserved.


   
1Like our page
2Share
Markets
Chinese buyers are back in the market for American soybeans after crushers in the Asian nation were granted a new round of tariff waivers, according to people familiar with the matter
chinese, buyers, soy, tariff
365
2019-23-23
Wednesday, 23 October 2019 09:23 AM
Newsmax Media, Inc.
 
Newsmax TV Live

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved