Workers transport imported soybean products at a port in Nantong, Jiangsu Province, China, April 9, 2018 (Illustration), Photo: Reuters
China bought about 1 million metric tons of U.S. soybeans this week, four traders told Reuters, as the world’s top buyer of the oilseed is ramping up purchases ahead of Chinese President Xi Jinping’s visit to Washington later this month.
With these purchases, China’s total purchases of American soybeans reached almost half of the 25 million tons that Beijing has committed to buying annually until 2028, according to the White House.
Although China’s purchases of American soybeans could contribute to strengthening trade and diplomatic relations with Washington, they are also taking place at a time when the global supply of oilseeds is decreasing due to falling inventories in Brazil, the world’s largest exporter.
“Sinograin has made additional purchases in the past few days. They are buying ahead of Xi’s visit to the United States of America (US),” said one Asia-based trader.
State-owned companies Sinograin and COFCO did not immediately respond to Reuters requests for comment.
The US Department of Agriculture said on Wednesday that 340.000 tonnes of US soybeans were sold to China, while an additional 100.000 tonnes were sold to buyers in unknown destinations.
China still applies an additional 10 percent tariff on all U.S. goods, including agricultural products, after a trade war last year. A reduction in the soybean tariff could re-attract private Chinese processors to U.S. shipments, after tariffs largely pushed them out of that market.
After the leaders of the two countries met in May, Washington announced that China had agreed to purchase $17 billion worth of American agricultural products, excluding soybeans, annually through 2028, while maintaining its commitment to purchase 25 million metric tons of American soybeans each year during the same period.
In late July, US President Donald Trump said Xi would visit Washington on September 24. China has not confirmed the date of the visit or the amount of planned purchases of US soybeans or other agricultural products.
Download the app and follow the news
FOLLOW US ON
News
