China releases import of 10m t of duty - free US soybean

Reuters International reported on Tuesday that China has released a new quota of 10 million tonnes of soybeans imported from the United States exempt from 25% tariffs. According to the agency, the quota is for private and state-owned oilseed processing and plant trading companies in China.

The volume was set at a meeting with Beijing officials, according to sources heard by Reuters, and a meeting that takes place weeks after US President Donald Trump announces that the Asian nation should expand its purchases of US agricultural products to somewhere between $ 40 billion and $ 50 billion.

The Chinese government, however, has not yet issued an official statement about the new quota.

Information from the international consultancy ARC Mercosur reports that a teleconference between high-ranking representatives from China and the United States was scheduled for Friday, October 25.

The news of this new quota comes at a time when the market is still waiting for more information about the partial agreement that was signed between the two parties, about 10 days ago, in Washington, but about which the market still does not know more details and even when it comes into force.

"The fact that only one quota has been released, which gives less than two months of need for imports from China, shows that nothing is yet resolved and they are solving a situation for the short term," believes Steve Cachia, consultant for AgroCulte and Cerealpar. "That is, we can not declare the end of the trade war yet. Everything is still open, including to have a deterioration in negotiations," he adds.

On Monday, Trump said "they started buying. I want more" at a White House meeting referring to China's purchases of US agricultural products. The information comes from the international news agency Bloomberg.

SOYA FROM BRAZIL

Besides the market's lack of knowledge about the details of the so-called 'phase one' of the partial agreement between China and the US, the market is still paying attention to the purchases that the Asian nation continues to make in Brazil. Its largest concentration of purchases remains in the Brazilian market, including focusing on the 2019/20 crop supply.

"Chinese buyers have been buying a lot of Brazilian soy. The government was sending a message to importers to be aware of the big picture," said one source from Reuters International.






Source: Agricultural News