Three traders who understand the transaction said that Chinese state-owned companies bought about 1.5 million tons of US soybeans on Thursday (28th) and will ship them in July and August. This is their second large-scale purchase of the US this month. Soy.
According to Reuters, the purchase comes at a time when US and Chinese officials hold talks in Beijing to end a protracted trade war between the two economic powers. This trade war has led to a sharp decline in US exports of commodities to China, and soybeans bear the brunt.
US officials said that China has put forward further proposals on a series of issues, including compulsory technology transfer, which is a particularly big obstacle facing the negotiations so far.
According to two traders, the soybeans purchased by China on the 28th were mainly from the Gulf Coast of the United States. This is also the latest example of Chinese state-owned enterprises purchasing a series of goods in the United States since December 2018.
Recently, after the Sino-US trade negotiations in Washington, Chinese buyers ordered about 1.7 million tons of soybeans, when US officials said Beijing promised to buy another 10 million tons of oilseeds.
According to data released by the US Department of Commerce on Wednesday (27th), China accelerated the purchase of US soybeans, helping the US trade deficit narrowed in January to the largest in 10 months.
According to the US Department of Agriculture, Thursday's deal has caused China's total purchases of the latest US soybeans to reach about 12.7 million tons so far this year, compared with 28.5 million tons in the same period last year.