Register with us today

and in less than 60 seconds continue your access to:Latest news headlinesAnalytical topics and featuresCommodities videos, podcast & blogsSample market prices & dataSpecial reportsSubscriber notes & daily commodity email alerts

Already have an account?

Log in to register

Forgot Password

Please Note: Platts Market Center subscribers can only reset passwords via the Platts Market Center

Enter your Email ID below and we will send you a link to reset your password.

  • Email Address* Please enter email address.

If you are a premium subscriber, we are unable to send you a link to reset password for security reasons. Please contact the Client Services team.

If you are a Platts Market Center subscriber, to reset your password go to the Platts Market Center to reset your password.

In this list

Soybean market awaits positive signs as US-China trade talks resume: sources

Agriculture | Energy | Coal | Electric Power | Natural Gas | LNG | Oil | Metals | Petrochemicals | Shipping

IMO 2020

Agriculture | Biofuels

Platts Biofuelscan

Agriculture | Grains

Asia Grains & Oilseeds Virtual Forum 2020

Oil | Crude Oil | Refined Products | Gasoline | Coronavirus

OIL FUTURES: Crude settles lower as COVID-19 surge threatens demand outlooks

Soybean market awaits positive signs as US-China trade talks resume: sources

New Delhi — Global soybean market will keep a close watch for any positive sign in the upcoming deputy-level US-China trade talks, scheduled to be held in Washington today, trade sources said.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

Washington meeting is seen as a prelude to the high-level early October trade talks between Trump and Xi administrations, represented by US Trade Representative Robert Lighthizer and US Treasury Secretary Steven Mnuchin, and China's Vice Premier Liu He.

Ahead of the upcoming talks, as a goodwill gesture, China bought 720,000 mt of US-origin soybeans early this week, according to the US Department of Agriculture daily sales report.

However, since Wednesday, soybean trading activity has been relatively quiet as the Chinese buyers are waiting for some positive development from the upcoming Washington talks, a trading source said.

Since July of last year, US-China trade tensions have escalated, with both sides levying multiple retaliatory tariffs on each other. Despite several rounds of talks since December, an agreement could not be reached.

As the US-China trade dispute lingers on, Beijing has looked to South America to replenish its huge soybean demand, sources said.

Before China slapped a retaliatory tariff on US soybeans in July last year, China bought 29.6 million mt of US-origin soybeans, accounting for 55% of total US exports over July 2017 to June 2018.

Over July 2018 to June 2019, China's imports of US beans fell 77% year on year to 6.7 million mt.

US-China trade relations hit a new low when both sides announced yet another round of retaliatory tariffs in August. While the Trump administration has been accusing China of not buying enough US agricultural products as promised, Beijing has charged the US with bullying during talks.

The US is the world's second-largest soybean exporter, behind Brazil. Both nations combined, account for over 80% of global soybean sales.

As the US soybean farmers confront plummeting soybean sales and prices, the Chinese buyers may experience supply-side constraint in the fourth quarter as South American soy inventory depletes, a trade source said. In the coming months, China may have to turn back to the US soy farmers, who are sitting on very high level of soy inventory.

US soybean stocks are estimated at 29.13 million mt at the end of August, which is the end of 2018-2019 marketing year, up 144% year on year, the USDA said in its monthly report.

China is world's biggest soybean importer, with an average yearly purchase of 88 million-90 million mt, accounting for over 60% of global soy purchases.

--Asim Anand,

--Edited by Kshitiz Goliya,