Days after China began an anti-dumping investigation of imported U.S. sorghum, its Ministry of Commerce met with domestic companies to discuss possible anti-dumping and anti-subsidy reviews of U.S. soybeans, reported Bloomberg. China buys two-thirds of the soybeans on the world market and is increasingly relying on Brazil for the oilseed. The current U.S. share of the global soybean market is the smallest since 2006.
Citing “people familiar with the matter,” Bloomberg said the Commerce Ministry “has been studying the possibility of taking measures since January, including anti-dumping and anti-subsidy probes.” The Beijing representative on the U.S. Soybean Export Council confirmed that Chinese officials are researching the likely impact on Chinese soybean processors if U.S. shipments are curtailed, but said that no decision had been made.
The sorghum investigation was announced by China less than two weeks after President Trump put tariffs on Chinese-made washing machines and solar panels. Bids for sorghum plummeted at U.S. cash markets as a result.
Agriculture Secretary Sonny Perdue said the incident showed how sensitive commodity prices are to trade disruptions. “We think the sorghum issue will mollify over time,” he said. He also said that in trade matters, “we can’t be responsible for China’s reaction. … We have to be ready for it.”
China, the No. 1 market for U.S. ag exports, is forecast to buy nearly 16 percent of the expected $140 billion in sales to foreign purchasers during 2018. Soybeans make up 17 percent of overall ag exports.