China has purchased large batches of Argentine soybeans and canola, which will allow it to postpone soybean purchases from the U.S. and canola from Canada.

According to traders, Chinese buyers have contracted at least 10 batches (other reports say 15 batches) or 500-750 thousand tons of Argentine soybeans after the Argentine authorities temporarily canceled export duties on grain. This has dealt a new blow to U.S. farmers, who have lost a major market and are suffering from low prices. By taking these actions, China is putting pressure on the U.S. and Canada in trade negotiations, hoping that the governments of these countries will be forced to make concessions under pressure from local farmers. Traders report that soybean shipments are scheduled for November, with a purchase price of about $450/ton CNF, which is $80-85/ton higher than the November soybean contract price on the Chicago S&P. The new deals worsen the situation for U.S. farmers, who are losing billions of dollars during the peak marketing season due to the lack of soybean exports to China, while competitors from South America, led by Brazil, are increasing their ...