National News Detail
China buys Brazilian soybeans amid U.S. trade deal uncertaintyChina buys Brazilian soybeans amid U.S. trade deal uncertainty
Photo: Adobe stock
By Susan Reidy
BEIJING, CHINA — China purchased at least 20 cargoes of Brazilian soybeans last week as uncertainty liners over a trade deal with the United States, Reuters reported.
Importers also purchased new crop Brazilian soybeans because of attractive margins. The beans will be delivered early next year.
Traders told Reuters that some U.S. and Argentinean cargoes also were booked last week for total purchases of about 30 cargoes.
China’s purchases of U.S. soybeans have been spotty due to the ongoing trade war between the two nations that has resulted in high tariffs.
The tariffs are expected to be lifted, Reuters said, if the two sides agree to the first phase of a trade deal.
Even though the two countries sent positive signals on an initial deal, markets are still concerned that the trade talks could stall, the news agency reported.
After the 16-month trade war, Chinese soybean buyers have tight stocks. Soymeal stocks hit a six-year low of 355,100 tonnes in the week ended Nov. 19, Reuters said.
At the same time, demand has slowed due to disease outbreak in China’s pig herd, which has shrunk 40% since a year ago.