China's soy buying spree may signal prudence before U.S. talks

Margins on crushing U.S. soybeans in China are higher than those of rival Brazil thanks to the lower prices of American soy when retaliatory tariffs are removed. Foto: Imaginechina via AP Images

Chinese firms have been snapping up U.S. soybeans this week, but don't mistake this as a sign of buyer confidence in upcoming trade talks.

The companies, which received a fresh 2 million-ton quota from Beijing to import American beans free of retaliatory tariffs, have been seeking soy every day so far. That's likely because they want to rush through orders in case the talks fail and imports are halted, said Darin Friedrichs, a senior analyst at INTL FCStone's Asia commodities division...

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