China will buy $50 billion of US agricultural products as part of a trade agreement between the world's two largest economies, the first soybean sales confirmed by the US government to China.
Prior to that, another report released by the U.S. Department of agriculture on Thursday morning showed that U.S. soybean exports totaled 475200 tons as of October 17, of which only 68300 tons were exported to China. Analysts estimate the report at 800000-1600000 tons.
A Bloomberg report Thursday morning said China was willing to buy $20 billion worth of American agricultural products in the first year of the trade agreement.
According to two sources, the Chinese government on Tuesday issued duty-free quotas to major domestic and international soybean crushers, which will exempt the import of up to 10 million tons of us soybeans from high tariffs.
Since the start of the year on September 1, USDA has confirmed the sale of about 6 million tons of soybeans to China. In contrast, 431000 tons of soybean exports were cancelled in the same period of 2018, and the sales volume in 2017 before the outbreak of the trade war was about 8.4 million tons in the same period.
Traders are also keeping a close eye on US pork sales to China. A deadly swine fever has killed a large number of pigs in China, increasing its demand for meat imports.
China's total purchase of U.S. pork last week was 2002 tons, the lowest level in five weeks, according to the U.S. Department of agriculture. That's less than the record 152599 tonnes purchased in the week of October 10, but the USDA said purchases in the previous weeks could also be included.
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