China ramped up buying of soybeans from Argentina this week after the South American country abruptly suspended export taxes, sidelining US farmers who usually dominate the trade at this point of the year.
Importers in China have expanded purchases to at least 35 cargoes, up from an earlier tally of 20 shipments, according to people familiar with the matter, who asked not to be identified as they’re not authorized to speak to the media. Most of the soybeans are slated to be loaded in November, they added.
China has shifted the focus of its agriculture purchases in recent years, and now relies on Brazil for most of its soybeans, which are crushed into cooking oil and animal feed. The world’s largest importer typically turns to US supplies between October and February following the American harvest, while the new Brazilian crop is in the process of growing for collection in March.
But as of Sept. 11 — almost two weeks into the new marketing season for the US — China hadn’t booked a single American cargo. That’s the first time in records going back to 1999, according to US Department of Agriculture data.
The American Soybean Association urged President Donald Trump to secure an “immediate deal” with China following reports of the Argentine purchases. In a statement on Wednesday, the group said “the farm economy is suffering.”
The Argentine cargoes are equivalent to more than 2.27 million tons. The most soybeans China has imported from the South American country on a monthly basis were about 2.23 million tons in July 2015. Still, there’s no guarantee all booked shipments will be delivered.
Some of the cargoes have also been booked for shipment next year from the new Argentinian crop, the people said. Buyers include Chinese state-owned and private crushers, as well as major foreign and domestic trading houses, they added.
On Monday, Argentina announced the temporary suspension of export taxes on crops including soybeans to boost supply of dollars in the foreign-exchange market and ease pressure on the peso. The measure would last until Oct. 31, or until crop sales reach $7 billion — a threshold that was met on Wednesday.
This article was generated from an automated news agency feed without modifications to text.
