The Stakes Keep Rising in the U.S.-China Trade Dispute
Trade relations between the U.S. and China remain tense and continue to escalate. Chinese buyers have not agreed to any new purchases of U.S. soybeans for the past two weeks; meanwhile, cargoes of 3 million tons of U.S. soybeans worth $1.3 billion for which deals have already been set, have not left U.S. ports.
China has also imposed new exorbitant tariffs on U.S. sorghum, leading to multiple ships carrying U.S. shipments enroute to China to change course.
Chinese imports of U.S. soybeans for the month of March fell 27 percent compared to February, as buyers turn to Brazil, Canada, and Argentina for supplies. This rising demand for Brazilian beans has led to the widest spread between U.S. and Brazilian soybean prices in years, with Brazilian beans being quoted at $467 per ton including cost and freight, compared to $435 per ton for U.S. beans.