U.S. Loses as China Buys Argentine Soybeans After Tax Drop

Chinese buyers booked at least 10 cargoes of Argentine soybeans after Buenos Aires scrapped grain export taxes, three traders said, delivering another setback to US farmers already squeezed by low prices and shut out of their top market, Naveen Thukral and Ella Cao reported for Reuters.

The purchases are a fresh blow for US farmers, who are missing out on billions of dollars in soybean sales to China halfway through their prime marketing season.

Argentina’s temporary tax cut boosted its competitiveness, prompting traders to secure fourth-quarter supplies for China — a period normally dominated by US shipments but now clouded by Washington’s trade war with Beijing.

The Panamax cargoes of about 65,000 metric tons each are scheduled for November, with cost-and-freight prices quoted at a $2.15–$2.30 per bushel premium over the Chicago Board of Trade November soybean contract, two traders with direct knowledge said.

One trader said as many as 15 cargoes had been booked.

The purchases are a fresh blow for US farmers, who are missing out on billions of dollars in soybean sales to China halfway through their prime marketing season, while rivals in South America — led by Brazil — step in to fill the gap.

“Every time China turns to South America instead of the US, soybean farmers and our farm families here at home lose out,” said Caleb Ragland, a farmer from Magnolia, Kentucky, and president of the American Soybean Association.

“Without a trade deal that removes retaliatory tariffs, farmers like me are left watching key opportunities slip away.”