China’s Imports of U.S. Soy Surge to Highest in About 2 Years

(Bloomberg) -- China’s imports of U.S. soybeans rose to the highest in 20 months in November after more American cargoes cleared customs ahead of the signing of a partial trade deal in January.

• China’s inbound shipments from the U.S. surged to 2.6 million tons, the highest since March 2018, and up from about 1.1 million tons in October. China imported almost no U.S. soybeans in November last year, customs data show.

Key Insights

• Chinese companies are likely to continue purchasing American soybeans as the two countries are expected to sign the partial trade deal in early January.
  • China has been issuing regular tariff waivers for domestic firms to buy U.S. soybeans.
  • The waivers cover the 30% retaliatory tariffs on American soybeans.
  • China’s total commitments in the current marketing year hit 10.5 million tons, compared with 2 million tons the previous year, U.S. Department of Agriculture data showed.
• China is reviewing retaliatory tariff exemptions for $60 billion of U.S. goods and will release a list of products eligible for an exemption at an “appropriate time,” China’s customs said in a statement.

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• The nation bought 3.9 million tons of soybeans from Brazil, the largest supplier, up from 3.8 million tons in October and 5.1 million tons in November last year.
• Imports from Argentina were 1.4 million tons, up from 959,936 tons in October and a mere 36,119 tons in November last year.
• China may see imports this month climb to about 9 million tons following more shipments from U.S., which could ease supply shortages at some crushers, said the China National Grain and Oils Information Center.
• NOTE: China Soy Imports Rise to 3-Month High as U.S. Cargoes Cleared
• NOTE: China Expert Says Buying $40 Billion in U.S. Farm Goods Viable

To contact Bloomberg News staff for this story: Niu Shuping in Beijing at nshuping@bloomberg.net

To contact the editor responsible for this story: Anna Kitanaka at akitanaka@bloomberg.net

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With assistance from Bloomberg