China expects record amount of US soybean purchases in 2020 – Bloomberg
|China is reportedly expecting a record amount of US soybean purchases this year as "lower prices help to boost purchases pledged under the Phase One trade deal", Bloomberg reports, citing people familiar with the matter.
Further points
“The total imports from the US will probably reach about 40 million tonnes in 2020, which will be around 25% more than the 2017 level - the baseline year for the deal.”
“One of the sources said that despite the forecast and expectation, China's imports will ultimately be decided by soybean prices and the impact of the virus pandemic i.e. no firm commitment.”
This comes a day after China Customs data showed that Beijing imported only 38,331 tonnes came from the US in July when compared to 911,888 tonnes imports from the same period last year and down from the 267,553 tonnes in June.
Market reaction
The China headlines failed to lift the risk sentiment, with AUD/USD still ranging below 0.7200, flat on the day. Meanwhile, the S&P 500 futures post small losses near 3,440 levels.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.