By Ella Cao and Naveen Thukral
Beijing/Singapore (Reuters) -Chinese FIRMS Have Booked The First Soymeal Position From Argentina Since Beijing Argentine Imports in 2019, the China’s Animal Feed Industry Looks to Broaden Its Supply Options to Mitigate Potential Disrupts from the US -China Trade War.
Several Chinese Feed Makers have jointly SIGNED the Deal to Purchase 30,000 Metric Tons of Argentine Soymeal For July Ship, Four Trade Sorces Told Reuters on Thursday.
“This is just a test Case,” Said One Singapore-Based Trader at An International Trading Company, Which Sells Soybeans to China. “If it Goes Through China’s Inspection and Quarantine, We Expect More Deals.”
The Cargo, Purchased at $ 360 per ton on a CNF (Cost and Freight) Basis, is Expected to Arrive in Southern Guangdong Province in Septamber, The Source Said.
China is the World’s Biggest Consumer of the Protein-Rich Animal Feed Raw Material But Produces of it by Crushing Soybeans Mainly Imported from Brazil and the United States. Argentina is the world’s top exporter of soy oil and meal.
Chinese Buyers have been scooping up brazilian soybeans and shunning us exports due to high tariffs impossed during the ongoing trade war butteen beijing and Washington.
The Singapore-Based Trader Told Reuters That the Chinese Feed Makers’ Purchase From Argentina Was Part of An Effort To Safeguard Supplies in the TRADE WAR HAS A Lasting Impacts of US Soybeans.
LOWER PRICES FOR ARGENTINE MEAL COMPARED TO THE LOCALLY PRODUCED WERE ALSO ENCOUNARGING THE MOVE, TRADERS SAID.
China Opened its Market to Argentine Soymeal in 2019 After Years of Resistance That Was Motivated by A Desire to Protect Its Domestic Crushing Industry. Market Participants at the Time Said the Decision Was Prompted by the Us-China Trade War During Us President Donald Trump‘S First Administration.
Reduct the Approval at Purchases of Bulk Positions of Argentine Soymeal Had Been Recorded Until Now, According to Chinese Customs Date.
China Imported About 30,000 Tons of Soymeal for the Entire Year In 2024, Mainly from Denmark, Customs Data Showed.
(Reporting by Ella Cao in Beijing and Naveen Thukral in Singapore; Editing by Joe Bavier)
