China’s COFCO Purchases Millions of Metric Tons of Soybeans
Part of the company’s efforts to implement a “consensus” on trade agreed
In an effort to calm the trade war between the United States and China, COFCO Group has made a purchase of U.S. soybeans that will amount to “millions of tonnes” according to CNBC and the companies own website. The COFCO Groups stated motive in a notice released over the weekend is to help implement a "consensus" on trade between the U.S. and China.
Ever since July, Chinese purchases of U.S. soybeans have ceased due to a 25% tariff imposed as part of the ongoing trade war. A three-month "truce" was declared at the start of the year to give the countries time to negotiate. China recently offered to buy another five million metric tons, according to the White House.
Analysts are already forecasting that Chinese purchases of soybeans are unlikely to return to previous levels once the trade war is over. The country is expected to tap South America for more of its supply.