August 6, 2020

USDA: 192,000 tonnes of US soybeans exported to China

The United States Department of Agriculture (USDA) said private exporters shipped 192,000 tonnes of US soybeans to China, the first sales of soybeans to China since July 27, Reuters reported.

The latest sales have come as increased political tension is building between the US and China. A review of the Phase 1 trade deal will be conducted by officials from both countries on August 15.

China has boosted its US grains and oilseeds purchases in recent weeks, with the USDA reporting that China purchased 5.2 million tonnes of US corn, 2.5 million tonnes of soybeans and 320,000 tonnes of hard wheat since July 10.

However, China is far from meeting its pledge of US$36.5 billion worth of US agricultural goods purchases by 2020, largely affected by the COVID-19 recession globally.

The US Census Bureau trade data showed China imported US$7.274 billion worth of US agricultural goods in the first half of this year. Soybeans accounted for US$1.4 billion, which normally would take up half of China's US imports.

After the USDA confirmed the latest US soybean exports to China, soybean futures on the Chicago Board of Trade turned lower with the benchmark November contract falling 1-3/4 cents at US$8.80 per bushel.

-      Reuters