China issues fresh US soybean quota to crushers amid trade talks

The Chinese government has issued new tariff free quota for US soybeans to private and international crushers ahead of the deadline for new US tariffs on $165 billion of Chinese goods, several market sources confirmed to Agricensus.

The Chinese National Development and Reform Committee was said to have granted Wilmar, Bunge, Cargill, Louis Dreyfus and two private Chinese crushers up to 2 million mt of new tariff free quota to import US soybeans amid ongoing US-China trade talks.

“The volume is a guess. 1 million mt will be a fair guess… Above 2 million mt is not possible,” one market source at a major trading house told Agricensus.

Four other trade sources also confirmed to Agricensus.

Private crushers including Xiangchi and Bohi also received quota.

“There are clients already seeking US soybeans,” one China-based broker said.

"Each company got 2-3 cargoes," one China-based soybean trader from an international crusher said, referring to the size of quota.

CBOT soybean futures were up 7-8 c/bu across the board by time of press.

China set a target to grant up to 10 million mt of tariff-free imports of US soybeans in October this year, of which 6-7 million mt has already been used.

The market was waiting for new tranche of import quotas to be issued before a December 15 deadline when the US will slap an additional 15% of tariff on $165 billion of Chinese goods.

China had purchased at least 25 million mt of soybeans on governmental tariff-free quota since November last year.