China Signals that Purchases of US Soybeans Hinge on Tariff Removal

China, the world’s biggest buyer of soybeans, has yet to book any U.S. soybean cargoes from its autumn harvest.

China trade deal
soybeans
(AgWeb)

The United States should remove what China described as unreasonable tariffs and create conditions to expand bilateral trade, a Chinese commerce ministry spokesperson said on Thursday when asked if China would purchase U.S. soybeans.

China, the world’s biggest buyer of soybeans, has yet to book any U.S. soybean cargoes from its autumn harvest, traders have said, opting for South American supply instead.

U.S. farmers stand to miss out on billions of dollars of soybean sales because of unresolved trade tensions that have halted exports to China.

Senior Chinese trade negotiator Li Chenggang on Monday met political and business leaders from the U.S. Midwest, where the bulk of American soybeans are harvested, signalling that the world’s second-largest economy could purchase some American soybeans ahead of more wide-ranging trade talks.

However, disagreement on technical details appears to be complicating negotiations, with Chinese and U.S. trade officials set to meet again at the U.S. Treasury on Thursday.

“Regarding the trade of soybeans, the United States should take positive action to cancel the relevant unreasonable tariffs to create conditions for expanding bilateral trade,” commerce ministry spokesperson He Yadong told a news conference.

(Reporting by Joe Cash and Ryan WooEditing by Jacqueline Wong and David Goodman)

AgWeb-Logo crop
Related Stories
Vince Boddicker of Farmers Trading Company says while no sales have been confirmed, just the rumors of China in the U.S. market looking for bids brought buyers back into the market.
Grains saw nice reversals and closed higher on Monday, which was a victory considering the amount of bearish news the market had to absorb according to Kevin Duling with KD Investors.
Brad Kooima says cattle were catching some spillover selling from the news the Iran peace deal had been signed, the higher equity markets and lower crude oil futures.
Get News Daily
Get Market Alerts
Get News & Markets App