MercoPress. South Atlantic News Agency

Chinese private firms return to buy some 600.000 tons of US soybeans

The soybean purchases, which at more than 600,000 tons were the largest by Chinese private importers in more than a year

Privately run Chinese firms bought at least 10 boatloads of U.S. soybeans on Thursday, the country's most significant purchases since at least June, traders said, ahead of high-level talks next month aimed at ending a bilateral trade war that has lasted more than a year.

The soybean purchases, which at more than 600,000 tons were the largest by Chinese private importers in more than a year, are slated for shipment from U.S. Pacific Northwest export terminals from October to December, according to market sources.

The purchases were another indication that trade tensions between Washington and Beijing could be easing, after hitting a low last month when China suspended all U.S. farm product purchases in response to threats by President Donald Trump to impose more tariffs on Chinese goods.

Benchmark Chicago Board of Trade soybean futures jumped to one-month highs on Thursday, with the actively traded November contract in its steepest rally since May.

Beijing this week renewed a promise to buy U.S. agricultural goods such as pork and soybeans, the most valuable U.S. farm export. Large agricultural product purchases are a key U.S. stipulation for a trade deal, but the two sides remain far apart on other issues..

Thursday's soybean deals were the largest among private Chinese importers since Beijing raised import tariffs by 25% on U.S. soybeans in July 2018 in retaliation for U.S. duties on Chinese goods. Duties were raised an additional 5% this month.

Other soybean purchases over the past year have been made almost exclusively by state-owned Chinese firms which are exempted from the steep import tariffs.

Beijing in July offered to exempt five private crushers from import tariffs on U.S. beans arriving by the end of the year, but very few deals took place before buying was suspended.

Earlier on Thursday Beijing said Chinese companies were inquiring about prices of agricultural goods.