China shy on jump back into soy­beans

San Antonio Express-News - - BUSINESS -

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.

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