The company’s forecast is one of the most pessimistic about the impact of the trade war between Washington in Beijing for North American farmers.
China will almost entirely replace its imports of US soybeans for Brazil’s grains and other sources next season but may run out of oil in early 2019, an executive at a major Chinese mill on Tuesday told Reuters.
The company’s forecast is one of the most pessimistic about the impact of the trade war between Washington in Beijing for American farmers.
Imports from the United States, which normally rank second among China’s largest suppliers, are expected to drop to only 700,000 tonnes in the 2018/19 season as of this month, said Guo Yanchao, vice president of the Jiusan Group.
This compares to 27.85 million tons of soybeans imported into the US the year before.
Meanwhile, imports from Brazil will jump to 71.06 million tonnes, with the rest coming from Argentina, Canada, Russia and other countries, Guo told an industry conference.
But stocks of the commodity may end until February or March of next year, when Brazil’s soy offer is limited, the executive said.
In April tariffs imposed by China on products imported from the United States could favor sales of Brazilian soybeans to the Asian giant.
Brazil was the main exporter of soybeans to China in 2017, followed by the US.
The country shipped 50.9 million tonnes of the commodity to the Asian country last year, up 33 percent from a year earlier, while the United States provided 32.8 million tonnes, according to data from China’s Customs Department.
In April, the US announced tariffs on Chinese products, claiming intellectual property infringement. In response to the tax, China imposed 25% tariffs on 128 US products, including soybeans .
The two countries have been making consecutive announcements of trade barriers and retaliations, raising fears about a trade war. As those involved are the major world powers, the conflict tends to affect the economy of other countries worldwide. This is because the production and consumption chains are interconnected.