China: The country continues to choose Brazilian soybeans even as the U.S. resumes exports, with price and tariffs making U.S. options less competitive.

Source: markettimes.vn A soybean harvester at a farm in Brazil. Photo: REUTERS Trade sources said that private soybean processors in China are locking in contracts to buy Brazilian soybeans for delivery from February onwards, as the harvest accelerates, supplies become more abundant, and prices are pressured down. This development could reduce demand for U.S. shipments as the North American export season begins in September. China has purchased around 12 million tons of U.S. soybeans after relations between Beijing and Washington "warmed up" since late October, but all these transactions were carried out by state-owned enterprises such as Sinograin and COFCO, given that higher U.S. soybean prices have kept private traders on the sidelines. Even when Beijing requires state-owned enterprises and state grain reserves agencies like Sinograin to buy more to meet commitments in the trade agreement with Washington, the 13% tariff that China imposes on U.S. soybeans still makes the ...