October 22, 2004

Argentina Avoids Soybean Oil Trade Standoff with China
 

Talks between Argentina and China have helped avoid a disruption in China's purchases of soybean oil from its South American supplier, according to the Argentine government.

On October 1, China lowered the maximum solvent residue content in imports of the edible oil by about half, threatening to disrupt more than $1 billion in shipments from Argentina and Brazil, the country's two main suppliers.

"There are conversations ongoing between both sides,'' which have averted a halt in shipments", said Marriano Ripari, agricultural counselor at Argentina's embassy in Beijing.

China imported 2 million metric tons of soybean oil in the first nine months this year, up 71 percent on the year, according to customs data. September imports fell 16 percent on the year to 242,984 tons.