 "The American Soybean Association (ASA) has been urging the White House to make soybeans a top priority in trade discussions with China. AFP")
The row over soybean purchase between China and the US has finally found a conclusion after Beijing’s state-owned trader COFCO purchased at least 14 cargoes of the grain from Washington for a shipment from December through January.
According to a report by Reuters, eight vessels of soybeans will ship off from US Gulf Coast terminals in December, while the rest are slated for shipment in January next year from Pacific Northwest ports.
A second trader estimated that about 75 per cent of the sales were destined for the Gulf, with the rest coming from the PNW. The total could increase if additional deals are finalised, traders aware of the development told the news agency.
The sale of soybeans had become a major cause of a diplomatic standoff between President Donald Trump and Chinese leader Xi Jinping. The latest development comes after the two leaders held a meeting in South Korea last month.
The White House said China had agreed to buy 12 million metric tons of US soybeans this year, but only a small volume of sales had occurred before Monday.
US-China soybean trade deal
The US has lost a big market in China for soybean products after Beijing turned to South America to fulfil its needs. Autumn is the prime marketing season for U.S. soybeans as farmers bring in fresh crops from their fields.
In 2020, during his first term, President Trump signed a trade agreement with China in which China committed to purchasing tens of billions of dollars’ worth of US agricultural products and to expanding access for US goods in its agrarian markets.
However, China has never met its targets under the deal as it seeks to diversify its food sources.
US soybean futures on the Chicago Board of Trade rallied nearly 3 per cent on Monday to a 17-month high on the trade optimism.
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View AllCash premiums for soybeans delivered to Gulf Coast and PNW terminals in the coming months and loaded for export jumped by 10 cents a bushel or more, traders said.
With inputs from agencies