China’s Imports of U.S. Soybeans Jumped in December Before Trade Deal

(Bloomberg) --

Chinese purchases of American soybeans jumped to 3.1 million tons in December, compared with 2.6 million tons the previous month, customs data show.

• That’s the highest since March 2018, and compares with less than 70,000 tons a year earlier.

Key Insights

• The increase in Chinese purchases is likely due to buyers taking advantage of the government’s move to waive retaliatory tariffs on U.S. soy, which remain in place at 30%.
• Since December, purchases by China have been lacking, though this may be because buyers are waiting until the U.S. harvest begins and prices come down.
• More imports from the U.S. will likely come at the expense of Brazil, analysts and industry watchers have said.

Get More

• China’s soy imports from Brazil were 4.83 million tons, compared with 3.86 million tons in November
• Purchases from Argentina were at 1.31 million tons versus 1.42 million tons in November
• READ: China Buys Brazilian Soybeans Before Trade Deal With U.S
• READ: China’s Pork Imports Hit Record in 2019, Soy Buying Steady

To contact the reporter on this story: Alfred Cang in Singapore at acang@bloomberg.net

To contact the editors responsible for this story: Anna Kitanaka at akitanaka@bloomberg.net, Atul Prakash

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