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China soybean orders shoot up in back-to-back purchases
- 13 Feb, 2019
- China
China’s state-owned procurer Cofco Corp. bought another 1 million metric tons of the grain last week, just days after placing its previous orders, Bloomberg reports.
Last Saturday it announced that it had bought 2 million tons from US suppliers following the last set of trade talks in Washington. Since the two countries agreed to a 90-day truce period ending March 1, China has pledged to increase its purchases of US agricultural products, on which it had previously placed 25% tariffs.
Sales are now picking up after almost entirely ceasing in the second half of 2018. Soybeans are a significant US export to China, which buys on average 30 million to 35 million tons a year.
The speed at which new orders are being placed, and their size – recent week’s included some of the largest daily soybean transactions on record – suggest that China is making good on its pledge, potentially as a sign of continued good will as the two countries search for a resolution.
Source: https://chinaeconomicreview.com/china-soybean-orders-shoot-up-in-back-to-back-purchases/
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