Source: Zol.ru (Russia)
The Chinese state-owned company COFCO has purchased three shipments of soybeans from the US. These are the country’s first purchases from this year’s US harvest, which took place shortly before the summit between US President Donald Trump and Chinese President Xi Jinping.
According to AZERTAC, while the two countries are fighting over trade tariffs, the lack of Chinese purchases has cost American farmers billions of dollars in lost sales.
Although COFCO’s deal to supply about 180,000 tons of soybeans was China’s first such purchase in several months, traders do not expect a significant resumption of demand for US cargoes after recent large purchases from South America, Reuters writes.
Soybean futures prices on the Chicago Board of Trade jumped to their highest level in 15 months this week, rebounding from recent five-year lows amid hopes for a trade agreement between the US and China.
The main soybean export season from the US usually lasts from October to January, but this year China has turned away from US autumn soybeans amid protracted trade friction with Washington and has instead turned to South American suppliers.
China, which accounts for more than 60% of global soybean imports, has almost completed its soybean bookings from Brazil and Argentina for November.