Agri-Pulse reports:
The U.S. and China have walked back their triple-digit minimum tariffs on each other’s products. But even with the temporary relief, U.S. soybeans could still lose Chinese market share, the U.S. Soybean Export Council’s Jim Sutter tells Agri-Pulse.
China will keep 10% duties on U.S. imports, which, Sutter says, gives Brazilian soybeans about a 20% price advantage on U.S. producers.
“It will keep us as the last resort,” Sutter said. The announcement of tariff de-escalation is “a step in the right direction,” Sutter added. But he noted that absent a deal to further lower Chinese tariffs or secure purchase commitments from Beijing to import U.S. ag products, challenges will remain for U.S. exporters.
Take note: May’s agricultural supply and demand estimates released Monday showed USDA adjusted export projections for this fiscal year up slightly, but it estimates they’ll tumble next year.
Sutter said this is likely because Chinese buyers rushed to Brazilian soy after tariffs were imposed, driving the price of Brazilian soybeans up and boosting purchases outside of China’s for U.S. soybeans.
