China Makes Token Purchase of Soybeans

07/08/2019

The USDA announced that China placed orders for 20 million bushels of soybeans on June 28th apparently as a gesture before the meeting between President Trump and Premier Xi.

The purchase should be placed in prospective by reviewing past shipments.  In 2017 China imported 759 million bushels of soybeans. The order would represent one percent of the projected export of 1,950 million bushels optimistically forecast by USDA for 2019.  Following the imposition of a 25 percent duty by China in retaliation for U.S. tariffs, China imported 21 million bushels for the entire 2018.  Although approximately 80 million bushels were ordered in mid- and late –December 2018 actual shipments were below the intended quantity.

The prospect of additional shipments of soybeans from the U.S. to China will be conditional on progress in bilateral trade talks including resolution of structural problems beyond tariffs.


















































































































































































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