China races to purchase US soybeans a day after trade talk

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China races to purchase US soybeans a day after trade talk

On Friday, February the 1st, 2019, the Chinese state-owned firms had purchased at least 1 million ton of US Soybeans, just a day after the conclusion of high-level bilateral trade talk, which had rekindled the hope of a rational, yet practical trade deal for both US and China.

Nevertheless, after reaching a trade truce on December 1st, over a Saturday night dinner, in the latest G20 summit, the two economic superpowers had been holding several rounds of talks, which initiated at first as a vice-ministerial level phone calls between the two nation in early January, 2019.

Since the beginning of trade talk, China had purchased two separate shipments of US soybeans, and this recent purchase would be the third after the initiation of trade talk in order to resolve the deep trade differences between the countries.

At least three traders with knowledge regarding the purchase said on Friday, February the 1st, that, the purchases are scheduled for shipment between April and July, while a large share of Soybeans are expected to be released from the US gulf coast export terminals.

As one trader with direct knowledge with the deal said the total purchase could account for around $2.2 million ton, the US soybean futures, Sv1 rallied to a multi-month high on Friday (February 1st), over the news of renewed demand of almost dried out US soybean exports.