Trump says China 'back in the market' for U.S. soybeans

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The U.S. Department of Agriculture estimates that U.S. soybean export prices dropped by about 20% since April 2018, even as major production rivals Brazil and Argentina have remained significantly ahead. For example, shares in BMW rose 1.8 per cent, Daimler's share price increased by 2.7 per cent, Volkswagen rallied by 3.6 per cent, and General Motors jumped by 1.5 per cent.

Longer-term, China has a lot to gain from free trade in autos as Chinese manufacturers such as Guangzhou Automobile Group Co. and Geely Automobile Holdings look to move overseas.

The US has hit a total of US$250 billion worth of Chinese goods with tariffs since July, and China has retaliated by imposing duties on US$110 billion of US goods.

China's government says its economic czar and U.S. Treasury secretary Steven Mnuchin have discussed plans for the next round of talks in a tariff battle following a temporary cease-fire. "And therefore tension between China and US will continue".


Skepticism also remains over the impact on the soybean market, as the imports are likely to be made by state-owned enterprises while Chinese commercial buyers that typically buy more are still hampered by tariffs.

Trump is in the midst of delicate negotiations with China after agreeing to a 90-day tariff truce with Xi at a December 1 dinner in Buenos Aires.

The giant Asian commodity importer bought 1.5 million to 2 million metric tons of American supply over the past 24 hours, with shipments expected to occur sometime during the first quarter, the U.S. Soybean Export Council said, citing unidentified industry sources.

Foreign Minister Wang Yi said Tuesday that Beijing will "spare no effort" to protect against "any bullying that infringes the legitimate rights and interests of Chinese citizens".


Trump told Reuters in an interview on Tuesday that China was buying a "tremendous amount" of usa soybeans and would also soon cut tariffs on us autos.

"China has revealed two cards by lowering import tariffs on cars and buying American soy beans, but [US president Donald] Trump has yet to do so", she said.

Sentiment had got a brief lift on Tuesday from reports China was considering cutting import tariffs on American-made cars to 15 percent from the current 40 percent.

China's economy czar and USA trade envoys discussed plans for talks on a tariff battle, the government said Tuesday, indicating negotiations are going ahead despite tension over the arrest of a Chinese tech executive. There was also no response from the White House nor the US Trade Representative's Office. China's decision came amid a period of heightening tensions between the US and China over trade and intellectual property issues. "And maybe a meeting of the top people on both sides", he said. Soybean exports to China accounted for around 10% of the total value of all United States agricultural exports a year ago.


Daimler also exports its vehicles from the United States to China and it saw its shares go up by 2.7% in trading.

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