China's state-owned importer reserves US soybean purchases as tariff threat looms

Published 2024년 12월 20일

Tridge summary

China's state-owned grain trader, Sinograin Corp, has purchased nearly 500,000 metric tons of U.S. soybeans for shipment in March and April, despite Brazilian beans being cheaper. The purchases follow a similar pattern last week, where China booked deals for about 750,000 tons for January-March shipment. These purchases come as China's overall agricultural imports have slowed down and Brazil is preparing to harvest a record crop, leading to concerns about low processing margins and potential tariffs from the U.S. Under the Trump administration. The motives behind Sinograin's decision to pay more for U.S. soybeans despite the higher cost are not clear, but it could be seen as an effort to build up China's strategic reserves or a gesture to the new U.S. administration.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

CHICAGO, Dec 19 (Reuters) - China’s Sinograin Corp bought nearly 500,000 metric tons of U.S. soybeans this week for shipment in March and April, paying more for U.S. supplies for state reserves than it would for cheaper Brazilian beans, two U.S. traders familiar with the deals said. China is the world’s biggest buyer of soybeans and a crucial market for U.S. and Brazilian farmers, who supply the bulk of China’s imports. The industry is closely monitoring sales and trade flows to China ahead of President-elect Donald Trump’s inauguration on Jan. 20, worried that another round of retaliatory tariffs could erode the value of U.S. soybeans. Soybean prices hit four-year lows this week on trade tensions and amid high U.S. stockpiles and a looming record harvest in Brazil. Sinograin’s purchases this week follow deals China booked last week for about 750,000 tons for January-March shipment. Those are modest volumes for Sinograin, China’s state-owned grain trader and strategic reserve ...

Source: NoticiasAgricolas