China Expands Argentine Soybean Buying to 20 Cargoes

Chinese importers maintained a hectic pace of Argentine soybean purchases after the South American supplier’s move to temporarily abolish export taxes made its prices competitive, traders said, Ella Cao and Naveen Thukral reported for Reuters.

Since Argentina lifted its tax, Chinese buyers have booked about 20 cargoes — roughly 1.3 million metric tons (MMT) of soybeans — two traders said. (Photo: Proinde) 

The purchases are eroding US market share as its farmers begin harvesting a bumper crop shunned by China amid an ongoing trade war between the world’s two largest economies.

Since Argentina lifted its tax, Chinese buyers have booked about 20 cargoes — roughly 1.3 million metric tons (MMT) of soybeans — two traders said.

Reuters reported recently that Chinese buyers had ordered at least 10 cargoes, with one trader putting the figure at 15 Panamax-sized vessels of 65,000 MT each.

US soybeans have become prohibitively expensive for Chinese buyers, thanks to retaliatory tariffs imposed by Beijing.

“Essentially China will have enough beans without US beans,” said one trader at an international firm that ships to China and is among the buyers. “Most of the cargoes are for November shipment, and around 20% are for shipment next year from the new Argentinian crop that will be harvested from April.”