Multiple grain traders told Reuters that Chinese soybean buyers have booked at least ten cargoes of Argentinian soybeans after the country decided to scrap export taxes.
That’s another setback to America’s farmers, who are already shut out of their number one market and hurting from low prices. Removing the tax on exports boosts the competitiveness of Argentina’s soybeans, prompting traders to purchase cargoes for fourth-quarter inventories in China, a period that’s usually dominated by U.S. soybean imports.
However, Reuters said that’s now clouded by Washington’s trade war with Beijing. One trader said Chinese buyers booked a total of 15 cargoes, dealing a fresh blow to America’s farmers, missing out on billions in soybean sales to China halfway through their prime marketing season.
Argentina temporarily eliminated export taxes on grains and their by-products, as well as on beef and poultry, in a bid to spur sales abroad and bring in much-needed income.