👀 Ones to watch: The MOST undervalued stocks to buy right nowSee Undervalued Stocks

China buys U.S. soybeans after Beijing issues new tariff waivers: traders

Published 12/09/2019, 02:08 PM
Updated 12/09/2019, 02:11 PM
China buys U.S. soybeans after Beijing issues new tariff waivers: traders

By Karl Plume

CHICAGO (Reuters) - Chinese soy importers on Monday bought at least five bulk cargo shipments of U.S. soybeans, or about 300,000 tonnes, for shipment in January and February after Beijing offered the buyers at least 1 million tonnes in new tariff waivers, U.S. exporters said.

The fresh allotment of tariff waivers, which exempts importers from 30% tariffs on U.S. shipments, comes after buyers used up nearly all of the 10 million tonnes in waivers awarded by Beijing in October, the traders said.

China has imposed steep tariffs on U.S. soybeans and other agricultural products in retaliation for U.S. duties on Chinese goods during a 17-month trade war that has disrupted global grain flows, rattled markets and weighed on global economic growth.

Monday's purchases, the largest in at least two weeks, according to U.S. Department of Agriculture (USDA) data, came ahead of a Dec. 15 deadline, when U.S. President Donald Trump has said he would impose a new round of tariffs on Chinese goods.

China said on Monday that it hoped to make a trade deal with the United States as soon as possible, before the new tariffs kick in.

U.S. soybean futures on the Chicago Board of Trade staged their strongest rally in two months on Monday, with the benchmark January contract climbing above the $9-per-bushel mark for the first time in two weeks.

The fresh soybean sales bring China's total U.S. purchases for the current Sept-Aug marketing year to around 10 million tonnes, according to USDA data. That is well above the roughly 455,000 tonnes in commitments at the same point last year but considerably less than the 21.5 million tonnes in sales on the books in early December 2017, before the trade war began.

U.S. soybean shipments to the world's top importer of the oilseed eroded as China turned to South American suppliers for more soybeans. But available soybean supplies from Brazil are running low ahead of the country's harvest, which typically ramps up in January or February.

Beijing said on Friday it will waive import tariffs for some soybeans and pork shipments from the United States but did not specify quantities.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.