China ready to unveil details of first batch of US soybean purchases
- Majority of the beans bought from American farmers are expected to be stored in state reserves
China intends to announce this month the first batch of US soybean purchases where most, if not all, will be destined for state reserves, according to government officials.
The final decision will be made by the State Council or cabinet, said the officials, who declined to be identified as the matter is confidential.
Details to be decided include whether the volume should be 5 million tonnes or 8 million tonnes and if commercial companies should buy a further 2 million tonnes and be reimbursed for the 25 per cent tariffs.
The decision comes just over a week after US President Donald Trump and Chinese counterpart Xi Jinping agreed during the G20 meeting in Argentina to resolve the trade tensions that have disrupted global commodity flows.
The resumption of US soybean purchases will provide some relief to American farmers who have seen exports to the world’s biggest consumer plummet and domestic inventories pile up.
Ministry of Finance officials led a meeting last week to discuss restarting American imports, the officials said.