Chinese importers have been busy booking fresh purchases of soybeans from Brazil this week, despite the White House announcement that China had agreed to buy up to $50bn of US farm products annually during trade talks last week.
Two traders said China has booked at least eight boatloads, or 480,000 tonnes worth $173m, of Brazilian soybeans since Monday.
While Brazil is China’s largest soybean supplier, large purchases from Brazil are unusual at this time of year.
The lack of purchases from the United States so far this week shows China is in no hurry to buy US products in the wake of last week’s phase one trade agreement, that US President Donald Trump hopes will be signed next month.
Trump said on Twitter on Sunday that China has already begun making US agricultural purchases. But three US soybean exporters said there have been no US sales to China since last week’s talks in Washington, and none have been confirmed by the US Department of Agriculture.
"I’ve not had any inquiries at all for US (shipments)," said one of the US soybean exporters. "There were a few November boats bought from Brazil and several new-crop South American boats for March forward but nothing here."
Another US exporter said a drop in Brazilian soybean prices sparked fresh demand from commercial soy importers that have been unable to profitably import American soybeans for more than a year unless given tariff waivers.
State-owned firms COFCO and Sinograin, which are exempt from the 25% retaliatory duties on US imports, have "little appetite" to buy unless US prices drop further, the second US exporter said.
Before the trade war, China imported most of its US soy between October and January, turning to South America around February.
Prices for US soybeans loaded at Gulf Coast terminals in
November and December and shipped to China are now near par with Brazilian soy prices. But when prices for soybeans from the two top suppliers are similar, Chinese importers tend to favour Brazilian beans due to their higher average protein content.
Chinese importer Hopefull Grain & Oil bought 10 cargoes of Brazilian soy last week ahead of US-China talks and at least 3 cargoes this week, two of the trade sources said.
Wilmar was also a buyer, with about 5 to 6 cargoes purchased from Brazil this week, according to a US exporter and two traders, one of whom was based in Beijing while the other worked for a Chinese trading house.
Both Hopefull and Wilmar declined to comment.
The companies are believed to have used up their waivers for tariff-free US purchases in recent waves of buying, a US exporter and a Chinese importer said.
White House economic adviser Larry Kudlow acknowledged on Thursday that China’s "serious commitment" to buy up to $50bn of agricultural products would depend in part on private companies and market conditions.