Private Chinese Buyer Confirmed By USDA – Soybean Sale
The U.S. Department of Agriculture (USDA) confirmed on Thursday that a small sized sale of soybeans to China has been made. The USDA said a private sales transaction was completed in the last week to China.
The buyer was a private investor and bought 68,000 metric tons from a U.S. soybean farmer. This is the first known transaction since the U.S. Government imposed tariffs on Chinese imports. There was a larger sale of soybeans in June to Chinese authorized government buyer of 544,00 metric tons. However this small private sale is the first sale since that June sale.
The sale announcement comes a day after U.S. And China negotiators had very little progress. The USDA also released it’s latest report on past, current, present soybean sales. The report indicated that China bought 66,800 metric tons of soybeans for the 2018/2019 delivery. The exact date of that sale and destination is unknown.
The USDA Revealed That China Also Canceled A Prior Order Of 72,900 Metric Tons Of Soybeans
The weekly USDA report also indicated that prior sales were canceled by the China for 72,900 metric tons of soybeans. The business relationships between China and U.S. Farmers remains ‘extremely shaky’ a source said.
After yesterday’s disappointing meeting in Shanghai between Chinese and American officials, another round of talks is planned for September. Some other telling information was released in the latest USDA sales report.
The data shows that China purchased 14.3 million metric tons of soybeans for the 2018/2019 season. This is the lowest amount of soybeans that China has bought in 11 years. Other data indicates that over 4 million metric tons of the soybean purchased has not yet been shipped.
An anonymous source familiar with Chinese officials involved in trade talks revealed some information. The source said Chinese officials met with private importers on July 19. That meeting China indicated that they planned to buy more soybeans from U.S. Farmers.
Private Chinese Buyers Were Told They Could Circumvent Tariffs Before December 2019
Another source said five crushers were told by a Chinese planner that they could apply for exemptions on the tariffs of 25% less. The caveat was that the U.S. cargoes had to arrive in China before the end of December.
Prior to that meeting private crushers found sale conditions more favorable in Brazil and Argentina. A U.S expert on trades has weighed in on the trade wars. Saying that if the tariffs are removed, U.S. Products will in fact be in high demand.
The expert claims prices shipped to Asia from the Pacific Northwest will be lower this fall. Much lower than prices of soybeans shipped from Brazil. Traders have been spreading rumors around about a sale.
The buyer from a larger Chinese crusher had bought a very small amount of soybeans from a seller in Pacific Northwest. Right now no large purchases of soybean are expected from China. The soybeans are used primarily to feed hogs, and to the African swine flu that has stalled too.