(Reuters) – Private exporters have sold 1.13 million tonnes of U.S. soybeans for delivery to China, the U.S. Agriculture Department said on Thursday, confirming sales Reuters reported a day earlier as trade tensions ease.
Traders said on Wednesday that China, the world’s top soybean importer, had booked its first significant U.S. soybean purchases in more than six months after a trade truce was reached on Dec. 1.
The sales come after U.S. President Donald Trump and China’s President Xi Jinping agreed to a 90-day detente in their tit-for-tat tariff war to negotiate a trade deal after meeting at the Group of 20 summit in Buenos Aires.
The USDA’s daily export sales reporting rules require exporters to promptly report sales of 100,000 tonnes or more of a commodity made in a single day but the buyers are not always immediately reported.
China last year purchased about 60 percent of U.S. soybean exports in deals valued at more than $12 billion. It dropped out of the market after Beijing slapped tariffs on U.S. shipments on July 6 in retaliation for U.S. duties on Chinese goods.
With exports to China drying up, U.S. soybean prices tumbled to their lowest levels in a decade. They rose to their highest since midsummer on Wednesday.
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Source: Investing.com
