Crop Chop: China Shuns U.S. Soybeans Amid Trade War, Turns To Brazil

One America News Network | 8/6/2018 | Staff
echolea (Posted by) Level 3
Click For Photo: https://d2pggiv3o55wnc.cloudfront.net/oann/wp-content/uploads/2018/09/2018-09-26T075254Z_1_LYNXNPEE8P0M2_RTROPTP_0_USA-TRADE-CHINA-SOYMEAL_1.jpg

SINGAPORE/BEIJING (Reuters) – China’s soybean processors are snapping up Brazilian cargoes for shipment in the fourth quarter, curbing purchases of U.S. crops for delivery in North America’s peak marketing season as the trade war between Washington and Beijing intensifies.

That shift away from U.S. beans by China, which takes more than 60 percent of the commodity traded worldwide, will pile further pressure on benchmark Chicago Board of Trade prices after they plumbed 10-year lows last week.

China - July - Import - Duty - US

China in July imposed a retaliatory 25-percent import duty on U.S. soybeans as part of the ****-for-tat trade dispute between the world’s top two economies, conflict that gathered steam this week with the introduction of fresh tariffs on other products.

“Chinese buyers are snatching soybeans from Brazil’s domestic oilseed market,” said a Singapore-based trader at an international trading company that runs oilseed processing plants in China.

Prices - Beans - Crushers - Media

“They are willing to pay a higher prices for Brazilian beans than what domestic crushers are paying,” he added, declining to be identified as he was not authorized to speak with media.

Brazil’s soybean export season typically ends in August-September after which cargoes from the United States take over the market until March. The South American nation is the world’s top exporter, while the United States is No. 2.

Importers - Year - Tonnes - Beans - October-November

But Chinese importers have this year booked around 12 to 14 million tonnes of Brazilian beans for October-November arrival, according to the trader and an analyst in China. That comes as increases in storage capacity and improved logistics have allowed Brazil to extend its selling season.

Soybeans are crushed to make cooking oil and soymeal, a protein-rich animal feed ingredient.

Cost - US - Beans - China - Soybeans

The landed cost of U.S. beans in China is currently similar to Brazilian soybeans even with the 25-percent tariff, but Chinese crushers are reluctant to take U.S. supply as they fear authorities may not approve cargoes.

“The government’s...
(Excerpt) Read more at: One America News Network
Wake Up To Breaking News!
Appeasement - when you're what's for dinner!
Sign In or Register to comment.

Welcome to Long Room!

Where The World Finds Its News!