CHINESE companies are cancelling most remaining US soybean orders they were committed to buy in the year ending August 31 even before tariffs on US imports take effect
CHINESE companies are cancelling most remaining US soybean orders they were committed to buy in the year ending August 31 even before tariffs on US imports take effect. Analysts don't expect many cargoes from the US to arrive in July as buyers have already stopped shipments, Bloomberg New reported.
China is the world's top soybean buyer and has yet to take delivery of about 1.14 million tonnes of US soybeans booked for the current marketing year, according to US Department of Agriculture.
The USDA reported that China had resold some 123,000 tons of committed deliveries to Bangladesh and Iran.
Soybeans are a key flash-point in the worsening trade relations between the US and China after Beijing said it would levy tariffs on imports in retaliation against duties imposed by the Trump administration.
While mostly bulk, soybeans are increasing containerised as transpacific backhaul rates are competitive given that most containers go to China empty, even more so now that China has banned importing waste paper and sundry recyclables.
Other benefits include keeping the quality of soybeans high and offering a competitive advantage for the US soybean industry, said the US Soybean Export Council.
