Chinese Soybean Buyers Asking U.S. Exporters to Delay July Cargoes
USAgNet - 06/17/2019
Chinese soybean buyers are asking sellers in the United States to delay cargoes due to be shipped in July until August, two sources familiar with the matter said, raising fears of cancellations like ones that roiled the market last year.
According to Reuters, the contract renegotiations come as the world's top two economies remain locked in a protracted trade war that prompted China to sharply cut purchases of the oilseed from its No. 2 supplier starting from the middle of last year.
Soybean imports from the United States virtually dried up in the second half of 2018, before Beijing agreed to buy nearly 14 million tonnes from American farmers over December to March during a temporary truce in the trade spat.
More than 6 million of those tonnes have already been shipped to China, but some 7 million tonnes bought before talks broke down in May still need to be delivered.
Beijing's state-owned companies are trying to roll about 2 million tonnes of July cargoes into August, said a source with direct knowledge of the matter.
"It isn't a washout yet. But it is strange that (the state firms) suddenly wanted to delay all July shipments by a month now," the source said.
A U.S. export broker confirmed that he had been approached by Chinese buyers to delay cargoes he sold them, and that he was working with them to execute the request.