Argentinian soybeans in the focus of Chinese importers

Chinese importers recently increased their purchase of Argentine soybeans after the South American supplier temporarily suspended export taxes. This measure made the prices competitive and sparked the interest of Chinese buyers, traders said on Wednesday. The increased imports from Argentina are cutting into the market share of the US, which is currently harvesting an excellent crop that China has been avoiding amid the trade dispute between the world's two largest economies. Since Monday, Chinese buyers have already booked about 20 shipments, approximately 1.3 million tons, of Argentine soybeans. Reuters reported on Tuesday that at least 10 or possibly up to 15 Panamax shipments of 65,000 tons each have been ordered. The costs for American soybeans have become unaffordable for Chinese buyers due to the retaliatory tariffs imposed by Beijing. "China will essentially have enough soybeans without relying on US beans," said an international trader shipping beans to China. Around 80 percent of the shipments are for delivery in November, while the rest is from the new Argentine crop that will be harvested from April next year. The tax deferral in Argentina is valid until October or until the declared exports reach $7 billion, which has helped lower the Chinese soybean meal price. The continuous imports help China fill supply gaps during a period typically dominated by US suppliers. So far, Beijing has not booked any US soybeans from the fall harvest. Chinese crush margins for Argentine soybeans are attractive at about 200 Yuan ($28) per ton, explained Wang Wenshen, analyst at Sublime China Information. "China is likely to accelerate the imports of Argentine soybeans to close the procurement gap from November to January and secure volumes before October 31 or reaching the $7 billion cap," Wang added. This will further reduce the market's dependence on US soybeans.