Markets

China Buys 1.3M Tons of Argentine Soybeans, Pressuring U.S. Exports Amid Trade War

Tax suspension in Argentina triggers wave of Chinese buying, bypassing new U.S. harvest

AgroLatam USA
AgroLatam USA

China has booked roughly 20 cargoes-about 1.3 million metric tons-of soybeans from Argentina, bypassing newly harvested U.S. supplies as Beijing continues to sideline American farmers amid an ongoing trade war, traders told Reuters this week.

The purchases follow Argentina's surprise move to suspend export taxes on soybeans, making its product temporarily more competitive in global markets. Most of the cargoes are slated for November shipment, with around 20% scheduled for delivery next spring from Argentina's next crop, traders said.

"Essentially China will have enough beans without U.S. beans," said a trader involved in the deals, noting that none of the recent U.S. harvest has been booked by China, which traditionally dominates early-season demand.

China Buys 1.3M Tons of Argentine Soybeans, Pressuring U.S. Exports Amid Trade War

The shift in Chinese buying patterns is a blow to U.S. farmers, who are beginning what is expected to be a strong soybean harvest. Yet retaliatory tariffs from Beijing have made American soybeans too expensive for Chinese crushers, and buyers are increasingly turning to South America-even as Brazil recently set a new export record.

Soybean cargoes were purchased at a premium of about $2 per bushel over the November Chicago Board of Trade (CBOT) soybean futures (SX25), according to two Asian traders.

Argentina's temporary tax cut will remain in place through October or until soybean exports reach $7 billion, the government said. The announcement has already impacted markets, sending Chinese soymeal futures lower.

China Buys 1.3M Tons of Argentine Soybeans, Pressuring U.S. Exports Amid Trade War

Analysts say Chinese crushing margins for Argentine soybeans remain attractive, currently hovering around 200 yuan ($28) per ton. With a limited window to act, Beijing is expected to ramp up purchases further to cover demand from November through January, just ahead of Brazil's next harvest.

"This will further reduce the market's reliance on U.S. soybeans," said Wang Wenshen, analyst at Sublime China Information.

The continued absence of Chinese buying during U.S. harvest season underscores the vulnerability of American commodity exports amid strained international relations. The development adds urgency for U.S. trade officials and farm policy advocates working to restore access to key global markets-or risk watching those relationships erode further.

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