Chicago Board of Trade soybean futures have been rising for the past 14 days, a total of +6.64%, on reports, China is granting new waivers to several domestic state and private companies to purchase U.S. soybeans without being subject to tariffs, according to Bloomberg.
Sources said the waivers were granted after a meeting last week with working officials; purchases of agriculture products like soybeans are seen as kind gestures ahead of a trade meeting between U.S. and China next month.
As shown below, soybeans have enjoyed a wave of buying over the past two weeks on expectations of a similar gesture of goodwill by China and positive trade war news flow.
These are some of the most significant soybean purchases since Beijing raised import tariffs by 25% on U.S. soybeans last summer in retaliation for duties on other Chinese goods.
While China is repurchasing U.S. soybeans, Argentina's Agriculture minister confirmed Monday that China has "Approved the first seven crushing plants in Argentina to begin exporting soymeal to the world's biggest consumer of the livestock feed," reported Reuters.
Last month, we reported how China wants to build a grains 'superhighway' in the South American country by dredging the Parana River, it will allow large bulk vessels to transport soybeans from the Pampas farm belt to the South Atlantic to the Pacific, and ultimately to China.
While the Trump administration celebrates China's latest agriculture purchases - keep in mind that China wants to become fully independent from the U.S., in terms of agriculture sourcing, which is why it's hedging itself with Argentina.
https://www.zerohedge.com/political/china-awards-new-tariff-waivers-us-soybean-imports-shipments-start-next-month
Sources said the waivers were granted after a meeting last week with working officials; purchases of agriculture products like soybeans are seen as kind gestures ahead of a trade meeting between U.S. and China next month.
As shown below, soybeans have enjoyed a wave of buying over the past two weeks on expectations of a similar gesture of goodwill by China and positive trade war news flow.
These are some of the most significant soybean purchases since Beijing raised import tariffs by 25% on U.S. soybeans last summer in retaliation for duties on other Chinese goods.
While China is repurchasing U.S. soybeans, Argentina's Agriculture minister confirmed Monday that China has "Approved the first seven crushing plants in Argentina to begin exporting soymeal to the world's biggest consumer of the livestock feed," reported Reuters.
Last month, we reported how China wants to build a grains 'superhighway' in the South American country by dredging the Parana River, it will allow large bulk vessels to transport soybeans from the Pampas farm belt to the South Atlantic to the Pacific, and ultimately to China.
While the Trump administration celebrates China's latest agriculture purchases - keep in mind that China wants to become fully independent from the U.S., in terms of agriculture sourcing, which is why it's hedging itself with Argentina.
https://www.zerohedge.com/political/china-awards-new-tariff-waivers-us-soybean-imports-shipments-start-next-month
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