Import volumes could reach 8 million tons, a Chinese government official said
By Diego Flammini
Staff Writer
Farms.com
Ships carrying U.S. soybeans could begin sailing to China soon.
The Chinese State Council or cabinet will have the final word on when the country resumes imports of American soybeans, and how much of the commodity China will receive.
Government officials are debating if China should import 5 million tons or 8 million tons. They are also discussing if commercial companies should import an additional 2 million tons and receive reimbursement for the 25 percent tariffs, a government official said, Bloomberg reported.
Details are still unclear if the shipments will resume this month and be taxed, or if they’ll begin after a tariff reduction.
Last year, China accounted for 57 percent of U.S. soybean exports, worth about US$12.4 billion.
As of Oct. 2018, China had only imported about US$3.1 billion worth of U.S soybeans, the U.S. Census Bureau says.
News of any American soybeans arriving at Chinese ports is beneficial for the industry, said John Heisdorffer, chairman of the American Soybean Association.
“We couldn’t be more thrilled if China starts to accept our beans again,” he told Farms.com. “We’ve had almost zero beans going into China for the last three or four months. So, for there to be a little bit of hope that these trade talks appear to be successful is great for American soybean farmers.”
Soybean markets have responded positively to renewed trade discussions between China and the U.S.
After Presidents Jinping and Trump agreed to a trade truce during the G20 in Argentina, soybean prices jumped to US$9.19 per bushel.
Grain markets opened today at US$9.12 per bushel.