China buys U.S. soybeans despite Beijing directive

CHICAGO/BEIJING/ SINGAPORE • State-owned Chinese firms bought at least three cargoes of U.S. soybeans on Monday, even as sources in China said the government had told them to halt purchases after Washington said it would eliminate special treatment for Hong Kong to punish Beijing.

The purchases, totalling at least 180,000 tonnes of the oilseed, were for shipment in October or November, the peak U.S. soy export season when American soybeans are usually the cheapest in the world, three U.S. traders with knowledge of the deals said.

It was not immediately clear why buying continued after Beijing’s message to state-owned firms, but U.S. traders said Chinese importers still have not covered a large share of October and November soybean needs.

“It’s murky, really hard to say,” said one U.S. export trader. “Maybe they wanted to knock a few cents off the price, or maybe there’s some other agenda.”

Earlier, two sources familiar with the matter said China had told state-owned firms to halt large-scale U.S. soybean and pork purchases, and one of the sources said state purchases of U.S. corn and cotton have also been put on hold.

The soybean sales on Monday were small compared to recent purchases by state-owned firms totalling 1 million tonnes or more.

China is ready to suspend imports of more American agriculture products if Washington takes further action on Hong Kong, the sources said.

On Monday, China said U.S. attempts to harm Chinese interests will be met with firm countermeasures.