China has lifted tariffs on soybean imports from the U.S. up to a limit of $10mn tons, said two sources briefed in this context.State and privately managed crushers in addition to leading global trading houses owning crushing plants in the country were offered the import quota at a meeting held by state planner on Tuesday. The waiver included shipments from the U.S. through March helping companies to avoid high tariff rates on their soybean imports.
However, the waiver did not make much of an impact because of steep prices of the U.S. soybean and buying was therefore quite subdued. Buying from China has been largely dependent on market conditions in recent times though U.S. President Donald Trump had assured of asurge in forthcoming sales.
No comment could be obtained from the National Development and Reform Commission, China’s state planner.U.S. shipments to China could garner bids, 15 cents per bushel lower than the offer from exporters, stated a U.S. broker confirming lack of sales in the forthcoming period due to high prices of the goods.
At the same time there was a scramble for the Gulf Coast soybean shipments delivered in later part of the year by exporters who anticipated imminent purchases. December and November influxes were garnering per bushel bids of 4 to 6 cents.
The state planner meeting comes in the wake of an agreement between China and U.S.A. which included a commitment on the part of China for a yearly purchase of U.S. agricultural produce worth $50 billion.
However, the following days saw China opting for large quantities of soybeans from Brazil instead.
Expectations of increased purchases led to a rise on the Chicago Board of Trade’s most dynamic soybean contract which hiked to within ¼ cent of $9.45-1/2 per bushel, the all-time high reached during the trade dispute. It stabilized to a per bushel rate of about $9.34 as purchases failed to meet expected figures.