Chinese importers have purchased at least 10 shipments of soybeans from Argentina after the Argentine government temporarily lifted grain export tariffs. According to three international traders, this move represents another serious blow to US farmers.
Argentina’s tax cut has made the country’s soybean exports more competitive and encouraged Chinese buyers to stock up for the fourth quarter. This period, normally dominated by the US, has been reversed due to trade tensions between Washington and Beijing. The shipments, carrying approximately 65,000 tons on Panamax-class vessels, are scheduled for delivery in November. The deals were reportedly concluded at a premium of $2.15–$2.30 per bushel over the November soybean futures contract on the Chicago Mercantile Exchange.
Some sources indicate that Chinese importers have signed a purchase agreement for 15 shipments (approximately 1 million tons). Experts believe this situation is further deepening the US’s losses in the Chinese market. The near-halt sales, especially during the peak of the export season, are putting American farmers in a difficult position.
Caleb Ragland, President of the American Soybean Association and a Kentucky farmer, summarized the situation as follows: “Every time China returns to South America, we, as family farmers, lose billions of dollars in opportunities. This situation will not change without a trade agreement that eliminates retaliatory tariffs.”
China, the world’s largest soybean buyer, has yet to purchase US-origin soybeans during this year’s harvest. Traders say these deals, made so soon after Argentina’s tariff decision, demonstrate that Beijing “doesn’t need US beans.”
Last week, Chinese President Xi Jinping and US President Donald Trump made no progress on agricultural trade. This situation continues to keep soybean prices on the Chicago Board of Exchanges near five-year lows.
