China turns to Russia for soybeans amid ongoing trade dispute with US
Moscow — China, the world’s biggest soybean importer, has almost tripled purchases from Russia amid a trade dispute with the US, the biggest producer.
Russia sold about 850,000 tonnes of soybeans to China from the start of the 12-month season in July through to mid-May, according to Russia’s agriculture agency Rosselkhoznadzor. That’s more than during any season before and compares with about 340,000 tonnes sold during all of the previous period, according to Chinese customs data.
China has already canceled several shipments from the US in anticipation of tariffs on the country’s products. While Brazil is expected to take much of that market share, Russia is also benefiting.
Russian supplies make up less than 1% of the 97-million tonnes of soybeans that China is set to buy overseas this season, according to US government data. Russia is a net importer of the oilseed.
Russian soybean plantings in the Far East, the region nearest China, will probably remain little changed during the next season, at about 1.4 million hectares, said Daniil Khotko, an analyst at the Institute for Agricultural Market Studies (IKAR), in Moscow. They may expand by as much as 20% during the next two to three years.