US soybean import to China has been reopened this week. This news made American farmers sigh with relief. This step will give Beijing extra points during the negotiations with Washington on future trade relations.
According to the authoritative agency Bloomberg, about 2 million tons of soybeans have been bought over the past 24 hours. Deliveries of purchased products will begin early next year.
At the moment, it is not clear enough whether China will abolish gas and soybeans duties imported from the United States. It has been rumored that the government may simply return the margin to customers.
If to compare with last year, the purchases of soybeans almost stopped in October. This had a bad effect on the price of the product and the income of the American farming.
At the G-20 summit, the leaders of the States and China were able to reach an agreement according to which the United States would cancel the tariff increase for 3 months. For its part, the PRC would increase the purchase volume of agricultural goods from America. During this period, the parties will negotiate a settlement of disputes.
The material was prepared with the participation of Katya Gordon,
a leading analyst of the brokerage company CT Trade