The trade war between the U.S. and China has made Argentina the top buyer of U.S. soybeans. Department of Agriculture Data shows that 1.3 million metric tons of U.S. soybeans have been inspected for export to Argentina from September 1 through November 22. That compares with none in the same year-ago period. China, previously the top buyer of U.S. soy, is seeking purchases elsewhere amid the tit-for-tat trade war with the United States.
Bloomberg News reports that normally Argentina processes its own soybeans to export meal and oil. But, with China on the hunt for non-American soy, it’s shipping out more raw beans and buying more from the U.S. to feed its crushers, especially after a drought earlier this year curbed output. At the start of the trade war, China placed a 25 percent tariff on U.S. soybean, seeking to inflict the most pain possible on the U.S. by targeting agriculture.
Argentina is closing in on an agreement to send exports of beef to the United States for the first time in nearly 20 years. Reuters reports the agreement, expected to be signed within days, would simultaneously open beef imports to both countries. Argentina’s International Trade Secretary says the deal would open a market for the U.S. cattle sector, although demand for U.S. beef is low in Argentina. Under the agreement being crafted, Argentina would have a 20,000 metric ton limit on exports to the U.S., while there would be no limit on U.S. beef exports to Argentina.
Another senior Argentine official confirmed that Argentina and the United States were “close” to striking a deal, according to Reuters. Argentina stopped exporting beef to the United States about 17 years ago due to U.S. concerns about contamination of Argentine cattle by foot-and-mouth disease.
Source: NAFB News Service