Despite the carrot of a potential exemption from import tariffs, Chinese soybean crushers are unlikely to buy in bulk from the United States any time soon as they grapple with poor margins and longer-term doubts about Sino-U.S. trade relations, people familiar with the matter said.
Reuters reports that a warming of relations led to hopes in the soy trade that the situation might improve. After talks last month, President Trump said he had agreed not to impose new tariffs on Chinese goods -- if China purchased more U.S. agricultural products.
But even without the extra tariffs, U.S. soybeans could not compete with Brazilian supplies on price until at least October, based on current premiums and margins, according to six traders and analysts surveyed by Reuters, making immediate orders unlikely.
Read the full report at Reuters.
