China is buying more American commodities as trade tensions rise.
China’s state owned crusher, Cofco, recently purchased 10-12 cargoes of U.S. soybeans. The size of the purchase equals nearly 795 metric tons, making it the highest contract volume since early July. The purchase will ship between October and November.
China’s total soybean imports hit the second highest level on record since July. According to data from China’s customs, the volume of 10 million metric tons is slightly behind June’s record high of 11 million tons. For the 2019-2020 marketing year, the Asian nation imported nearly 80 million metric tons.
China’s appetite for U.S. corn will continue. The nation’s domestic corn prices have tripled compared to American prices. Allendale’s president, Steve Georgy, is keeping a close eye on the numbers.
“They are selling corn to their own people, out of their state reserves, for almost $7.40 right now, coming here and buying it for about $3 dollars,” he said.
High level Phase One trade talks with China scheduled next week.
Pres. Trump’s optimism over trade deal with China falls.