02 June 2020
Despite the fact that the U.S. government ordered to suspend the purchase, after Washington announced the cancellation of a special regime for Hong Kong as punishment, the Beijing state-owned Beijing purchased at least three shipments of us soybeans in Monday, June 1.
One of the sources said that three American trader familiar with the deals purchased oilseeds of at least 180,000 tonnes for delivery in October and November. In a given period of time, there is peak season, exports of U.S. soybeans. No less interesting is the fact that U.S. soybeans are usually the cheapest in the world.
If you approach the situation from a logical point of view, there is nothing surprising in the actions of China, so how is it cheap and cheerful, it is unclear just why the purchases continued after the call of Beijing on the suspension. Traders explain the situation to the fact that Chinese importers have not yet covered a significant part of the needs for soybeans for October and November, and the best supplier than the United States yet.
“It is not entirely clear, it is very difficult to say. Maybe they wanted to bring down the price by a few cents, and maybe they have some other purpose. They really need beans” - said one of traders.
Yet days earlier, the couple of sources indicated that the Chinese government demanded the firm stop the purchase of soybeans and pork from the United States. We remind that a large-scale government purchases of U.S. corn and cotton are already completely suspended. If the U.S. government takes further action in respect of Hong Kong, China is willing to suspend the importation of a wider variety of agricultural products from the United States.
If the stop procurement will continue, under the threat gets the commitments of China in the framework of the signed in January of the first phase of trade deals with the United States. At the same time the official representative of foreign Ministry of China Zhao Lijiang told reporters during the daily briefing on Tuesday that he did not know about the situation, and the Ministry of agriculture and the office of the U.S. trade representative has not yet responded to requests for comment.
On Friday 29 may, the President of the United States Donald trump announced that the administration has already begun the process of revoking of Hong Kong's special status on a number of fields - from the extradition of suspects to export control, in response to the plans of China to enter in the new security act.