China puts US soy buying on hold as tariff war escalates
- US agriculture secretary said in February that China had pledged to buy an additional 10 million tonnes of American soy; orders have since stopped
- Previous purchases of US soybeans will not be cancelled, however
China, the world’s largest soybean buyer, has put purchases of American supplies on hold after the trade war between Washington and Beijing escalated, according to people familiar with the matter.
State-grain buyers have not received any further orders to continue with the so-called goodwill buying and do not expect that to happen given the lack of agreement in trade negotiations, said the people, who asked not to be named because the information is private.
Still, China currently has no plans to cancel previous purchases of American soybeans, the people said.
US President Donald Trump escalated his trade war with China earlier this month, ramping up tariffs on about US$200 billion of Chinese goods, prompting Beijing to retaliate with further duties of its own. Trump and his counterpart Xi Jinping are expected to meet again at the end of June for the G20 summit, when some analysts predict a potential resolution.
Soybean futures in Chicago slumped to a 10-year low earlier this month as the tensions peaked. Since then, prices have rebounded as a deluge of rain roils US plantings.