China’s Imports of U.S. Soy Surge to Highest in About Two Years

(Bloomberg) — China’s imports of U.S. soybeans rose to the highest in 20 months in November after more American cargoes cleared customs ahead of the signing of a partial trade deal in January.

China’s inbound shipments from the U.S. surged to 2.6 million tons, the highest since March 2018, and up from about 1.1 million tons in October. China imported almost no U.S. soybeans in November last year, customs data show.

Key Insights

• Chinese companies are likely to continue purchasing American soybeans as the two countries are expected to sign the partial trade deal in early January.

• China has been issuing regular tariff waivers for domestic firms to buy U.S. soybeans.

• The waivers cover the 30% retaliatory tariffs on American soybeans.

• China is reviewing retaliatory tariff exemptions for $60 billion of U.S. goods and will release a list of products eligible for an exemption at an “appropriate time,” China’s customs said in a statement.

• The nation bought 3.9 million tons of soybeans from Brazil, the largest supplier, up from 3.8 million tons in October and 5.1 million tons in November last year.

• Imports from Argentina were 1.4 million tons, up from 959,936 tons in October and a mere 36,119 tons in November last year.

China may see imports this month climb to about 9 million tons following more shipments from U.S., which could ease supply shortages at some crushers, according to the China National Grain and Oils Information Center.

Contact editor Yang Ge (geyang@caixin.com)