Hours after complimenting China for waiving tariffs on some U.S. products, President Trump announced on Wednesday a two-week delay, until Oct. 15, of higher tariffs on $250 billion worth of Chinese-made goods. On social media, Trump called the delay “a gesture of good will.”
China will remain the world’s largest soybean importer in coming years even if the trade war with the United States is not settled, but it won’t be buying as much of the oilseed, said USDA analysts on Wednesday.
In a break from the trade war, China made its third purchase of U.S. soybeans in a week, said the USDA on Wednesday. The purchases followed a meeting between President Trump and Chinese President Xi Jinping in Buenos Aires that Trump said would result in significant exports to China.
Thanks to continued strong demand from overseas buyers, U.S. corn exports this trade year could be the second highest ever, the Foreign Agricultural Service said on Thursday.
In the agricultural equivalent of coals to Newcastle, the No. 3 soybean grower in the world, Argentina, is buying soybeans from one of its major competitors, the United States, because of drought damage to its own crop.
Prolonged drought will limit Argentina’s soybean crop to 47 million tonnes this year, about 10 million tonnes less than usual, estimated the USDA in its monthly WASDE report.
Argentina is headed for its worst drought in three decades, and a downturn in crop production will likely slow the economic recovery in a country where corn and soybeans account for 36 percent of all exports, said Bloomberg.
Biodiesel makers in Argentina and Indonesia should face anti-dumping duties of up to 277 percent on their shipments to the United States, ruled the Commerce Department in a case brought by domestic producers.
An investigation by activist groups Mighty Earth and ActionAid USA challenges the notion of biodiesel as the environmentally responsible fuel of the future. Burned: Deception, Deforestation and America’s Biodiesel Policy claims that growing demand for biodiesel in the U.S. contributes to a host of problems, from deforestation in Argentina and Indonesia to algae blooms in Lake Erie and the Gulf of Mexico’s dead zone.