Last Monday, Chinese soy importers purchased at least 300,000 tons of US soybeans bound for shipment by January and February next year. The importers were offered a waiver on tariff rates for at least one million tons of the commodity by Beijing.
According to Fox Business, US exporters claimed that Beijing offered Chinese soy importers a tariff waiver if they would buy at least one million tons of soybeans amounting to at least 300,000 tons.
Last October, the report indicated that there had been fresh allotment of tariff waivers on soy products. The waiver was said to exempt soy importers 30 percent of the US tariff shipment taxes.
According to the report, 10 million tons of tariff waivers were offered by Beijing in October of this year. The traders claimed that China initially imposed smaller tariff rates on US soybean and agricultural products that related to US duties on Chinese goods.
The report indicated that the China-US trade war has adversely affected global grain flows thereby affecting global economic growth. The said 17-month trade dispute was also referred to as the cause for the largest soybean purchase in the last two weeks.
According to the US Department of Agriculture, the US would impose a new round of tariffs on Chinese goods come December 15, 2019. The data showed that the imposition may have resulted in an advanced purchase of soybean products for Chinese firms to avoid tariff payments.
Last Monday, it was also announced that China remains hopeful that the trade deal with the US would be finalized as soon as possible. The country also hopes that the same would be concluded before the new tariff rates would be imposed.
The Chicago Board of Trade announced that US soybean futures had their strongest rally last Monday. It was revealed that the benchmark January's contract on the millions' worth of soybean purchases superseded the $9-per-brushel mark for the first time in two weeks.
The report indicated that fresh soybean sales reach 10 million tons of US commodity purchases in August and September alone. The USDA data also showed that there have been 455,000 tons worth of purchases at the same time from 2018. However, the 2018 results were said to be 21.5 tons lower than this year's values.
The report also highlighted that the increase in the soybean purchases may have been caused by the China-US trade way which began in December 2017, the same time when commitments were lesser than this year.
