Russia to Offer Sale of 2.5 Million Acres to Raise Soybeans for China
USAgNet - 08/27/2018
Soybeans were one of the first major casualties in the escalating U.S.-China tariff war and Russia is hoping to exploit the situation by cutting deals with Chinese agribusinesses to make up for lost supply.
The Kremlin said this week it will offer some 2.5 million acres of arable land to foreign investors in what analysts describe as a bid to replace the U.S. as China's go-to soybean partner, reports the Washington Post.
China has fallen short on the beans in the wake of this summer's high-stakes trade battle with Washington - a battle that saw Beijing dramatically cut its soybean purchases from the U.S. in response to tariffs imposed on Chinese products by the Trump
Chinese officials have said they plan to shave nearly 7 million tons off the roughly 33 million tons they had been buying annually from U.S. farms, according to U.S. Department of Agriculture figures.
Soybeans represent U.S. farmers' single largest agricultural export to China, which takes in roughly 60 percent of world supply annually. Beijing's cut in purchases from the U.S. market has sent American futures prices for the bean tumbling.