The deal made with China and the US over trade included soybean purchases from the US. However it seems to have handed Chinese businesses an advantage in negotiating with Brazilian shippers of soybeans. Brazilian export prices eased up as a result of the announcement, providing an opening for large purchases from Brazil.
The so-called US-China agreement on soybeans has yet to be confirmed by the Chinese side, so we still don’t know if it’s real. But the leverage for China over Brazil’s soybean producers has increased for real, and will for a while. This may be a much larger advantage for China as a whole than decreasing tariffs for US soybeans later on will be.
Stockpiles of soybeans are growing in the US as the harvest ends, with many unsold beans. The door to China trade may not come quick enough for many farmers, causing a need to store longer. Chinese soybean consumers and may get a better deal from both parties.
Clever negotiating.
Supply Chain and Logistics 