May 7, 2018
China stops buying US soy?
Remember when it was reported that on July 13 last year, a Chinese trade delegation in the US signed purchase contracts for 460 million bushels of US soy worth more than $5 billion, a near-record amount?
Because of this, the US Soybean Export Council (USSEC) claimed that China preferred US soy. Chinese delegation member Jeffrey Zu, who participated in the signing ceremony, apparently confirmed this saying, "We buy US soybeans because they are sustainable and backed by reliable support".
Well, the brewing trade war between the US and China has changed the scenario: China has stopped buying US soy, according to a Bloomberg report .
The CEO of agricultural commodities supplier Bunge Ltd., Soren Schroder, told Bloomberg that Chinese factories are instead buying beans from Canada and Brazil, among others, "but very deliberately not buying anything from the US".
China announced last month it planned to impose tariffs on American soy exports.
'China boycott of US soy to continue'
Schroder said "so long as there is this big cloud of uncertainty", China's purchase of soybeans from other countries, mostly Brazil, would likely continue.
The prices of soybeans, which are the second-largest American crop, are heavily dependent on trade with China, the world's top importer.
Soybean was also the top agricultural export earner for the US last year. Export value last year totalled $21.6 billion, with corn trailing far behind with $9.1 billion.
Bloomberg cited US Department of Agriculture data that showed that in the two weeks ended April 19, China canceled a net 62,690 tonnes of US soybean purchases for the marketing year that ends Aug. 31.
Bunge itself, which is US-based, managed to meet Chinese demand by filling shipments with supplies from outside the US, Schroder said.