Chinese crushers seek another 1-2m mt of US soybeans after 3rd tariff exemption<\/h3>\n
Chinese authorities gave seven companies a third exemption from paying stiff import taxes on buying US soybeans on Monday, three market sources said, raising the prospect that another 1-2 million mt could be contracted this week.<\/p>\n
The well-placed sources confirmed that five privately-owned crushers and two state-owned companies received permission on Monday to import an undisclosed volume of soybeans from US suppliers without having to pay a 30% levy.<\/p>\n
The total volume is thought to be in the range of 1-2 million mt, although none of the sources would confirm the exact figure.<\/p>\n
“[The volume] is said to be similar to the last round,” one soybean trader from an international trading house told Agricensus.<\/p>\n
“This is a new quota,” said a soybean broker who works directly with the Chinese market.<\/p>\n
Several sources confirmed that Chinese buyers were seeking offers from US trading houses on Monday for November and December shipments following the exemption.<\/p>\n
In the past two rounds of quotas, Chinese crushers are thought to have bought 2-3 million mt of soybeans, and in the last round (since mid-September) an estimated 1-1.5 million mt was said to have been contracted for Q4 shipment.<\/p>\n
Since December 1, China has pledged to buy 20 million mt of soybeans in a bid to smooth negotiations during a trade war with the US.<\/p>\n
Of that total Chinese companies have either imported or contracted at least 16.5 million mt, according to USDA data.<\/p>\n
Market sources claim that figure is as high as 18 million mt.<\/p>\n
![\"\"](\"https:\/\/i0.wp.com\/commodityconversations.com\/wordpress2\/wp-content\/uploads\/2018\/11\/Screen-Shot-2018-11-27-at-12.16.37-pm-1-300x76.png?resize=300%2C76&ssl=1\")
<\/p>\n