Chinese importers closed contracts to buy 720,000 metric tons of U.S. soybeans – most of it for new crop – according to a USDA announcement Thursday, signaling the country is calculating the growing tightness of Brazilian supplies and locking in deliveries past September.
The fact that Chinese importers purchased between two and three cargoes of U.S. soybeans on Monday has helped quell concerns that the two countries might be rekindling their trade war, but the uncertainty of the situation continues to plague buyers and sellers.
China is shunning U.S. soybeans and pork – at least temporarily – in retaliation to U.S. involvement in China’s treatment of Hong Kong, but expectations are that Chinese state buyers won’t be able to shut off U.S. trade for much longer.
U.S. Trade Representative Robert Lighthizer is making it clear to Brazil that the U.S. is serious about strengthening trade and economic ties between the two countries whose leaders appear to be fond of each other.
Brazilian President Jair Bolsonaro did last week what many well-to-do Brazilians do. He went to Florida. But unlike most tourists, he stopped at Mar-a-Lago for a friendly meeting with President Donald Trump.
The U.S. has lifted its ban on Brazilian beef after shutting out the product more than two years ago because of repeated sanitary and health violations, according to USDA’s Food Safety and Inspection Service.
President Donald Trump announced Monday the U.S. will be restoring tariffs on Brazilian and Argentine steel and aluminum, potentially disrupting the recently improving U.S. trade relationships with Brazil.