The ongoing U.S./Chinese trade war showed signs of easing tensions earlier this week when Chinese importers purchased roughly 600,000 tonnes of U.S. soybeans.
Reuters reports that China has issued waivers for companies to exempt them from tariffs placed on U.S. waivers. Approximately 2 to 3 million tonnes of soybeans would be affected by the waivers, according to the reports.
The soybean purchases are welcome news after the recent cancellation of U.S. farm visits by Chinese officials. During a press conference on Monday, Treasury Secretary Steven Mnuchin claimed U.S. officials had requested the farm tour be canceled. However, President Donald Trump said at the same conference that he intends for China to begin buying U.S. agricultural products again.
“They’ve committed to buy a lot of agriculture, and they’re going to start, and they’ve started,” Trump said. “And we should get them over there as soon as possible so they can start buying.”
On Tuesday (Sept. 24), the market responded well to the news of the soybean purchases. The closing price was $8.93 per bushel, a two cent increase over the previous day’s price. In September, the price for soybeans has reached a low of at least $8.45 per bushel with a year low of $7.81 per bushel.
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