China has secured an unusual shipment of soybean meal from Argentina, as it aims to ensure a steady supply of this essential animal feed component during its ongoing trade conflict with the United States. A group of Chinese traders and feed producers has collectively placed an order for a trial shipment from the leading global exporter of soy meal and oil, as reported by informed sources. This transaction represents the inaugural acquisition following Beijing’s decision to permit imports from the nation in 2019, according to sources.
The 30,000-ton shipment is anticipated to depart from Argentina in July, with an expected arrival in the southern Chinese province of Guangdong in September, according to sources who requested anonymity regarding private transactions. The cargo was valued at approximately US$360 per ton, inclusive of freight, according to sources. The modest volume of the purchase is interpreted as a preliminary assessment in anticipation of the fourth quarter, a period during which US soybeans typically assert their dominance in the global market following the US harvest. China generally depends on imported raw soybeans, which are processed domestically into meal for livestock and utilized for cooking oil.
On Wednesday in Buenos Aires, Argentina’s leading crop exporting and crushing organization, comprising major trading houses, convened with Liu Huanxin, the head of China’s National Food and Strategic Reserves Administration, as reported by Gustavo Idigoras, the leader of the group known as Ciara-Cec. Idigoras stated that they examined the commercial viability of exporting Argentine soy meal. In a strategic move to circumvent US agricultural products amid the ongoing trade tensions with Washington, Beijing has actively pursued a diverse array of alternative suppliers. In May, it achieved a record monthly import volume of Brazilian soybeans.
Earlier this year, China implemented retaliatory tariffs on a variety of US agricultural products, notably including soybeans. Following discussions earlier this month, the United States announced that both parties had reached an agreement on a trade framework, representing a possible advancement in addressing the tariff disputes and alleviating tensions. Numerous aspects remain ambiguous, nonetheless.