China has again stopped purchasing soybeans from the United States. This is a result of the ever-growing trade conflict between the two world powers. China also suspended the purchase of American soybeans last year.
A trade agreement between the two countries seemed imminent this spring, but those negotiations ultimately yielded nothing. In May, US President Donald Trump again imposed higher import tariffs on Chinese products (valued at $2 billion) to put pressure on the kettle. China is now responding with a ban on soybeans from the United States, Bloomberg news agency reported.
Deal in 2018
China had already stopped buying soybeans from the United States last year, but the 2 countries reached an agreement at the end of 2018 after which the purchase was resumed. It was also agreed that China would buy even more soybeans. In just over 5 months, China has bought about 13 million tons of soybeans from the United States. The country had also pledged to stock up on another 10 million tons.
However, soybean buyers in the United States are now no longer receiving Chinese orders and are counting on them not to come again. At least not until the fighters reach an agreement again. In the meantime, there are sounds from the market that China is going to turn to Brazil.
This ban on US soybeans is sensitive to President Trump, because it directly affects soybean growers in the American Midwest. In the 2016 presidential election, 8 of the 10 states with the highest soy production (including Iowa and Illinois) rallied behind Trump. Not for nothing did the president recently say support to the injured American farmers.
Striking movement on course
Like on it DCA Dashboard Commodities As can be seen, the price of soybeans on the US CBoT rose by 30% on Thursday, May 2. Rising tensions between China and the United States brought the price to a low earlier this month, but buyers now mainly looked to the sowing of soybeans in the United States. It can finally be resumed after a period of rain.