Despite the carrot of a potential exemption from import tariffs, Chinese soybean...
BEIJING - 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.
There have been no signs of U.S. soybean sales to China in recent weeks, but in an apparent goodwill gesture Chinese officials briefed private importers last Friday on a plan to boost them, according to three people familiar with the matter. These and other people interviewed by Reuters on the subject declined to be named due to the sensitivity of the issue.
“It is hard to see buying of large U.S. shipments for the time being,” said Li Qiang, chief analyst with Shanghai JC Intelligence Co Ltd. Earlier this week U.S. Agriculture Secretary Sonny Perdue said China had commitments to buy 20 million tonnes of soybeans, though he did not specify a timeframe. While COFCO and Sinograin bought U.S. soybeans on government orders, the Chinese sources said, the five private importers at the meeting make buying decisions based on commercial interests - mainly crush margins - which don’t favor immediate buying.Data shows crushers in Rizhao, a major hub for soybean imports in northern China, currently lose 133 yuan for every ton of the oilseed they process.
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