This is the first sign of a slowdown in Chinese demand after five months of buying combined with declining production in Brazil. China is the largest importer of soybeans as it imported a large percentage of soybeans following the deadly African swine fever that hit the country. Beijing appears to have accelerated soybean purchases in the United States under a US-China trade deal that provided for massive increases in agricultural purchases.
The low price of soybeans boosted Chinese supply markets and US exports to China began at a rapid pace. However, the rise in soybean prices this month has worried buyers, which is why exports have fallen sharply. Thus, according to some sources, it seems that China is preparing to cancel the agreement. Finally, Argentina, which is a major supplier of soybeans, also had production difficulties, which seems to be improving.
To read full article: https://www.reuters.com/article/us-china-soybeans-cancellations-idUSKBN28510H
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