China shy on jump back into soybeans

There’s growing skepticism in the Chinese soybean industry that the U.S. trade truce will lead to a flurry of imports by commercial buyers.

While China’s state-owned companies may start buying American beans for national reserves, commercial crushers who usually control the lion’s share of purchases are unlikely to jump back in until the 25 percent retaliatory tariff on the U.S. legume is gone, brokers and traders told Bloomberg.

President Donald Trump and Chinese counterpart Xi Jinping’s pledge last weekend to work toward a deal in the next 90 days led to a three-day rally in Chicago soybean futures. But prices have since tapered off, as U.S. grain traders and lenders wait to be convinced that an agreement is really imminent.