China buys more soybeans after trade talks, but not much - Entrepreneur Generations

China promised to buy 5 million metric tons of soybeans from the U.S. after last week's trade talks, but so far has purchased far less than that. On Friday China bought over 1 million metric tons of soybeans, and on Monday purchased another 612,000 metric tons. 

Soybean futures rose on Monday because of the sales, but ag experts say the sales are underwhelming, Karl Plume reports for Reuters. "The export sales to China announced this morning were a bit disappointing compared with expectations. But here's a hope for continued sales to China and there are concerns about South American weather," Rich Nelson, chief strategist with Allendale Inc., told Plume.

Nelson is referring to Brazil, the world's top soybean exporter, which is expected to produce its largest soybean crop ever this year despite unusually hot, dry weather that could diminish the harvest, Plume reports. Since the U.S. is still imposing a 25 percent tariff on soybean exports, China may be motivated to buy more from Brazil instead.

One ag researcher said he thinks China's promise to buy more soybeans was a stalling tactic, Tyne Morgan reports for Ag Web. Ken Smithmier, director of research, agricultural markets for ClipperData, told Smithmier that "In my opinion, these look like statements from China that buys them time in the trade negotiation and makes U.S. officials happy, but for those of us in the grain market every day running the numbers to see how much they typically buy every year, it really doesn't amount to a whole lot."

President Trump has insisted on a March 1 deadline for trade talks with China before he imposes more tariffs.

from The Rural Blog http://bit.ly/2DUbDUv China buys more soybeans after trade talks, but not much - Entrepreneur Generations

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