China pegs more soybean purchases from the U.S.
Agricensus reports Chinese authorities gave seven companies a third exemption from tariffs. The market sources say total volume could be between 1 and 2 million metric tons, but no exact figures are confirmed. This is in addition to the last two rounds which are estimated at 3-4.5 million metric tons. While China exempts some soy from tariffs the trade war is hurting ag exports. Politico says replacing the Asian nation is nearly impossible.
The article cites the U.S. Japan deal as a big win, but although tariffs will be dropped on 7.2 billion worth of products, that doesn’t mean America will get the full total. So since sales to China are down $7.7 Billion dollars so far this fiscal year, Politico says it will be difficult to make up the deficit. Trade negotiations between the U.S. and China continue in less than two weeks.
