China expects a record amount of soybean purchases from the United States this year, as “lower prices help boost purchases promised under the Phase 1 trade deal,” Bloomberg reports, citing people familiar with the subject.
“Total imports from the United States are likely to reach around 40 million tonnes in 2020, about 25% above the level of 2017 – the base year for the agreement.”
“One of the sources said that despite forecasts and expectations, China’s imports will ultimately be decided by soybean prices and the impact of the viral pandemic, meaning no firm commitment.”
It comes a day after Chinese customs data showed Beijing imported just 38,331 tonnes from the United States in July, up from 911,888 tonnes imported in the same period last year, and up from 267,553 tonnes. in June.
Chinese headlines failed to elevate risk sentiment, with AUD / USD still remaining below 0.7200, flat on the day. Meanwhile, S&P 500 futures are showing small losses near 3440 levels.