HAMBURG (Reuters) - China may have to start buying U.S. soybeans again in coming weeks despite the trade war between the two countries as other regions cannot supply enough soybeans to meet China’s needs, Hamburg-based oilseeds analysts Oil World said on Tuesday.
In July, China imposed import tariffs on a list of U.S. goods, including soybeans, as part of the trade dispute with the United States. China is the world’s largest soybean importer and has been seeking alternative supplies, especially in South America, where supplies available for export are down.
“China has to resume purchases of U.S. soybeans,” Oil World said in its latest newsletter. “The South American supply shortage will make it necessary for China, in our opinion, to import 15 million tonnes of U.S. soybeans in October 2018/March 2019, even if the current trade war is not resolved.”
Chinese purchases of U.S. soybeans could re-start “in coming weeks,” Oil World added.
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Update: China realized oil tariffs would be like holding a gun to its own head (Washington Examiner)
WNU Editor: Resources and agricultural products are dictated by the free market. You can go ahead and put tariffs, but it takes time to find alternative sources, and there is no guarantee that the same price and quality will be there. Manufactured goods .... from steel/aluminum to finished goods .... are a different story, and it does not take long to find other sources and or establish your own .... which is exactly what U.S. manufacturers are now doing. My prediction .... China will lift its tariffs on U.S. energy products and agri-products in the next month or two.
