China purchases 67 million dollars’ worth of US soybeans and exempts the product from a new set of tariffs set to take effect this month as a sign of goodwill in ongoing trade negotiations.
Louisiana Soybean Grain Research and Promotion Board Chairman Charles Canatella says it’s great news for one of the state’s biggest crops.
“I think it is great that the markets are coming back, or trying to come back some. In the soybean market any news of Chinese buying or new buys by other countries the market wants to come back.”
In exchange, the US will delay the onset of a new set of tariffs on China until October 15th.
Canatella says it’s a substantial purchase that brings a lot of hope to Louisiana growers that a long term deal could get done.
“Really all of the grain market, corn, soybeans, grain, everything is kind of depressed with this tariff situation going on.”
The Chinese have agreed to purchase 204,000 tons of beans as the two nations reengage trade talks this week. Canatella says it’s a great first step, but they’ve gotten their hopes up before…
“We’ve heard this before that the Chinese are going to buy, then they don’t follow through, then they take a shipment of it and buy. Hopefully, that doesn’t happen this go around.”
President Trump has indicated he may be willing to settle for an interim deal that addresses some of the US’s long term issues while continuing to work on others.