Conflicting Signals From China About Future Purchases

China appears to be sending mixed signals about its interest in importing ag products from the U.S. Over the past week relations between the world’s two economies soured further over Beijing’s move to curtail public demonstrations and free speech in Hong Kong, prompting the Trump administration to declare they no longer viewed the former British colony as autonomous from the mainland. In return, China reportedly directed its state owned companies Monday to stop making large purchases of U.S. soybeans and pork… only for the USDA to confirm two purchases earlier this week of over 310 thousand tons of soybeans destined for China later this year.

John Zanker of Risk Management Commodities in Indiana says American farmers need Chinese purchases of soybeans now and throughout the year after exports fell off with the trade war…

While China committed to increasing purchases in the Phase One agreement signed earlier this year, Zanker says they don’t need us in the short term.

Zanker notes that China’s recent purchases of beans from Brazil for September and October shipment further indicate that they’re willing to put the deal with the U.S. at risk. President Trump said last month he was willing to throw the much-touted deal out in response to China’s handling of the coronavirus outbreak. Developments surrounding Hong Kong, including China’s move to ban demonstrations recognizing this week’s anniversary of Chinese troops suppressing pro-democracy protests at Tiananmen Square, also cast another shadow over the future of American exports there.