China Signs First Argentine Soymeal Deal In Six Years

Chinese companies have signed their first soymeal import deal with Argentina since Beijing approved such imports in 2019, as China’s feed industry looks to diversify amid ongoing trade tensions with the U.S., Ella Cao and Naveen Thukral reported for Reuters.

China is the world’s largest consumer of soymeal.

Four trade sources told Reuters that multiple Chinese feed manufacturers jointly agreed to purchase 30,000 metric tons of Argentine soymeal for July shipment. “This is just a test case,” said a Singapore-based trader with an international firm that sells soybeans to China.

“If it passes China’s inspection and quarantine, we expect more deals.”

The cargo was purchased at $360 per ton on a cost-and-freight (CNF) basis and is expected to arrive in Guangdong province by September.

China, the world’s largest consumer of soymeal—a protein-rich feed used primarily for livestock—typically imports soybeans from Brazil and the U.S. for domestic crushing.

However, high tariffs imposed during the ongoing U.S.-China trade war have prompted Chinese buyers to favor Brazilian soybeans and now explore new sourcing channels like Argentina, the world’s top exporter of soy oil and soymeal.