China’s Cofco buys ‘millions of tonnes’ of US soybeans
- Deal part of efforts to implement a ‘consensus’ on trade agreed between China and the United States, company says
Chinese state agricultural conglomerate Cofco Group recently bought a batch of soybeans amounting to “millions of tonnes” from the United States, it said in a notice on Saturday.
The purchase was part of the company’s efforts to implement a “consensus” on trade agreed between China and the United States, it said in a notice on its website.
Soybeans have been a crucial element in simmering trade tensions between the two countries. China – the world’s biggest soybean importer – cut off purchases from the US in 2018, sending prices tumbling and leaving farmers struggling to sell off their record harvest.
Purchases ceased in July after Beijing slapped 25 per cent tariffs on US soybeans and other goods, retaliating against similar tariffs imposed by Washington.
The tit-for-tat trade war was enough to bring full-year Chinese soybean exports from the US down to their lowest level since 2008, with shipments down by half at 16.6 million tonnes.
However, the two countries agreed a 90-day truce at the beginning of January, allowing China to resume purchases.