Reported about 1 year ago
In recent weeks, China, the world's leading soybean importer, has been increasing its soybean imports in an effort to mitigate the impact of potential tariff increases due to the escalating trade war with the US. Despite the Phase One trade deal signed in January 2020 where China pledged to purchase more US agricultural products including soybeans, the influx of cheap Brazilian soybeans in the Chinese market has significantly reduced the market share of US soybeans. Chinese buyers have already purchased an estimated 12-13 million tons of soybeans for July 2024, marking a noticeable increase compared to the previous year. Overall, global market conditions with ample soybean supply have led to a decrease in prices, with the Chicago Board of Trade soybean futures hitting their lowest level since 2020 on July 1st.
Source: YAHOO