China Imports Argentine Soybean Meal for the First Time Amid Tensions with the U.S.

China has ordered a rare shipment of soybean meal from Argentina as the country seeks to secure supplies of a key ingredient for animal feed amid its ongoing trade war with the United States.

Several trading companies and Chinese feed producers jointly ordered the cargo from the world’s largest exporter of soybean meal and oil as a trial shipment, according to sources familiar with the deal who spoke to Bloomberg News. This is the first purchase since Beijing authorized imports of the product from Argentina in 2019, according to the sources.

The 30,000-ton shipment is expected to depart from Argentina in July and arrive in Guangdong province, southern China, in September, the sources said. The deal was negotiated at around USD 360 per ton, including freight, according to the same sources, who requested anonymity due to the private nature of the transactions.

Although the volume is small, the purchase is being viewed as a test ahead of the fourth quarter, when U.S. soybeans typically dominate the global market following the American harvest. China usually relies on imports of whole soybeans, which are then crushed domestically to produce both meal for animal feed and cooking oil.

In an effort to avoid U.S. crops during the trade dispute with Washington, Beijing has turned to a number of alternative suppliers. The country also imported a record monthly volume of Brazilian soybeans in May.

This year, China imposed retaliatory tariffs on a range of American agricultural products, including soybeans. Following talks earlier this month, the U.S. stated that both sides had agreed on a trade framework — a potential step toward resolving tariff disputes and easing tensions. However, many details remain unclear.

Source: Bloomberg Línea

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