China buys at least 500,000 tonnes of U.S. soybeans

 

By Karl Plume, Reuters

via Nasdaq - March 07, 2019

 

CHICAGO, March 7 (Reuters) - Chinese state-owned firms bought at least 500,000 tonnes of U.S. soybeans on Thursday, traders said, in the first purchases since a U.S. official said last month China had committed to buying an additional 10 million tonnes as part of trade negotiations.

 

The purchases of at least eight bulk cargoes were for shipment primarily from Pacific Northwest grain export terminals from June to September, two traders with knowledge of the deals told Reuters.

 

U.S. Agriculture Secretary Sonny Perdue said on Twitter on Feb. 22 that China had committed to buying an additional 10 million tonnes of U.S. soybeans during trade talks.

 

The two nations have levied tit-for-tat tariffs on each other's goods since last summer in a bruising trade war that has riled commodities markets and shifted global trade flows.

 

Washington and Beijing have been negotiating a trade agreement since December and have agreed not to raise tariffs further for the time being.

 

News of Thursday's sales lifted soybean futures on the Chicago Board of Trade as traders cheered the renewed buying by the world's top soybean importer following days of rumors that China was shopping for U.S. soy.

 

"They've been sporadically tire-kicking for a few days, checking on prices. They finally pulled the trigger today," said a U.S. soybean export trader.

 

Also on Thursday, U.S. Department of Agriculture data showed China bought 65,000 tonnes of U.S. sorghum...

 

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