This was announced in early February. The measures are related to the “Phase 1” deal of mid-January, in which China promised the United States to import significantly more agricultural raw materials from the states.
The exemption comes into force upon publication on the website of the Chinese Ministry of Economic Affairs. Market participants in China confirm that the application is straightforward.
At the end of February, China had already approved import tariff exemptions for 696 US goods, including US soybeans and grain. The import duty on US soybeans is currently at 27.5% after a small tariff cut on February 14th. However, China is currently buying more soybeans from the current crop in Brazil at prices of USD 382 / to c & f. In comparison, US soybeans cost $ 395 / to c & f.
During this week, feed manufacturers in China had bought a large amount of sorghum (millet) from the United States. Soybeans from the United States are currently too expensive. That could change from June when most of the Brazilian soybeans are shipped.
Source
HANSA Terminhandel
