China has signed its first soymeal import deal with Argentina since 2019, marking a potential turning point in global feed markets as Beijing looks to reduce dependency on U.S. exports.

According to four trade sources, Chinese feed makers jointly purchased 30,000 metric tons of Argentine soymeal, set to ship in July and arrive in Guangdong province in September. The cargo was priced at $360 per ton on a CNF basis.

"This is just a test case," said a Singapore-based trader. "If it clears China's inspection and quarantine process, we anticipate more contracts."

The deal comes amid lingering trade tensions between Washington and Beijing, which have led Chinese buyers to favor Brazilian soybeans over American ones. Argentina, the world's top exporter of soy oil and meal, now finds itself with a unique opening in the Chinese market.

Strategic motivations are clear. China seeks to avoid future supply shocks by diversifying feed sources. Trade war risks have previously driven up tariffs on U.S. soybeans, prompting firms to reassess supply chain reliability.

"Lower Argentine prices compared to domestic soymeal are also fueling demand," noted another trader.

Though China opened its market to Argentine soymeal in 2019, no bulk cargoes had shipped until now, according to customs data. In 2024, China imported just 30,000 tons of soymeal for the entire year, mostly from Denmark.

For Argentine producers, this signals a promising shift. Farmers, still holding back on wet, unharvested beans while waiting for prices to rise, could benefit if Chinese demand gains traction.

If the test shipment passes inspection, China could scale up Argentine soymeal imports, reducing reliance on U.S. and Brazilian supply amid a volatile geopolitical landscape.