China-US Soybean Export

US soybeans bear brunt of China's countermeasure tariffs

  • English

Shotlist


FILE: China - Date Unknown (CCTV - No access Chinese mainland)
1. Various of soybeans being hoisted at port, dumped into truck

Beijing, China - July 10, 2018 (CCTV - No access Chinese mainland)
2. SOUNDBITE (Chinese) Wang Liaowei, senior analyst with China National Grain and Oils Information Center:
"It means that U.S. soybeans will not be very competitive in the Chinese market. Actually, Chinese enterprises have cut their imports from the United States since June. Our data show during the three weeks before June 28, there were no new purchases of U.S. soybeans and instead, there was an import cut of 615,000 tons."

FILE: Iowa, USA - Nov 2017 (CCTV - No access Chinese mainland)
3. Various of harvester operating in soybean field
4. Soybean field, soybean pods
5. Various of harvester offloading soybeans to truck

Shanghai, China - July 10, 2018 (CCTV - No access Chinese mainland)
6. SOUNDBITE(Chinese) Cheng Guoqiang, professor, School of Economics and Management, Tongji University:
"In this context, [U.S.] soybean export to China may be much abated. As to its extent, it depends on the outputs in the South American region and the price of soybeans in the international market."

FILE: Cuiaba, Brazil - May 2016
7. Various of soybeans at cropland
8. Various of vehicles transporting soybeans to plant

Beijing, China - July 10, 2018 (CCTV - No access Chinese mainland)
9. SOUNDBITE (Chinese) Wang Liaowei, senior analyst with China National Grain and Oils Information Center:
"In addition, we can reduce the demand for soybeans by adjusting the feed formula. By adjusting the supply and demand, we can ensure a balance in the soybean market. We believe in one or two years, we can fully fill the gap left by the withdrawal of U.S. soybeans."

FILE: Jilin Province, northeast China - Date Unknown (CGTN - No access Chinese mainland)
10. Cropland
11. Various of bags of soybeans
12. Various of farmers working in cropland using machinery

Beijing, China - July 10, 2018 (CCTV - No access Chinese mainland)
13. SOUNDBITE(Chinese) Li Guoxiang, researcher, Chinese Academy of Social Sciences:
"As the cost, insurance and freight of U.S. soybeans increase following our countermeasure tariffs, we will further increase soybean imports from Asian and other countries after cutting tariffs on them, which will also prompt these countries to expand the plantation of soybeans."

FILE: China - Date Unknown (CCTV - No access Chinese mainland)
14. Soybeans being dumped into truck at port
15. Various of containers being hoisted, transported at port

Storyline


U.S. soybean farmers and exporters have borne the brunt of China's countermeasure tariffs levied in response to new U.S. tariffs imposed on July 6.

The U.S. additional tariffs of 25 percent on 34 billion U.S. dollars' worth of Chinese imports took effect on Friday. China's retaliatory tariffs of equal scale went into force immediately after the United States fired the first shot.

According to the China National Grain and Oils Information Center, China's 25-percent tariff imposed on U.S. soybeans will increase the cost of soybean import by 700 yuan to 800 yuan per ton, about 300 yuan higher than Brazilian soybeans.

"It means that U.S. soybeans will not be very competitive in the Chinese market. Actually, Chinese enterprises have cut their imports from the United States since June. Our data show during the three weeks before June 28, there were no new purchases of U.S. soybeans and instead, there was an import cut of 615,000 tons," said Wang Liaowei, senior analyst with the China National Grain and Oils Information Center.

About 36.24 million hectares of soybeans were planted in the United States this year, the second highest level in the country's history, with a yield expected to hit a record high of over 121 million tons.

China is the top export market for U.S. soybeans, accounting for almost 14 billion U.S. dollars in sales, representing roughly a third of total U.S. soybean production in 2017.

Under the impact of China-U.S. trade frictions, the demand for U.S. soybean exports will decline and the price will be under downward pressure.

Chicago Board of Trade (CBOT) agricultural commodities closed lower on Tuesday, with soybean futures falling about 16 percent from a high point at the end of May.

"In this context, [U.S.] soybean export to China may be much abated. As to its extent, it depends on the outputs in the South American region and the price of soybeans in the international market," said Cheng Guoqiang, professor with the School of Economics and Management at the Tongji University.

Chinese experts said that China is able to handle the drop in soybean imports and China's Ministry of Agriculture and relevant research departments are working out solutions to reduce reliance on soybean imports.

"In addition, we can reduce the demand for soybeans by adjusting the feed formula. By adjusting the supply and demand, we can ensure a balance in the soybean market. We believe in one or two years, we can fully fill the gap left by the withdrawal of U.S. soybeans," Wang said.

The Unite states is the second largest soybean exporter and its soybean exports in 2017-2018 accounted for 37 percent of the global trade. China is a big soybean importer and its imports accounted for 60 percent of the global trade. Over 60 percent of U.S. soybean exports went to China.

Experts said China contributed 85 percent to the global soybean trade growth over the past 20 years and the country will be a major contributor in the future as it continues to expand opening-up and more countries will benefit from China's increasing demand for soybeans.

"As the cost, insurance and freight of U.S. soybeans increase following our countermeasure tariffs, we will further increase soybean imports from Asian and other countries after cutting tariffs on them, which will also prompt these countries to expand the plantation of soybeans," said Li Guoxiang, researcher with the Chinese Academy of Social Sciences.

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  • ID : 8085178
  • Published : 2018-07-11 18:54
  • Last Modified : 2018-07-11 20:00:51
  • Location : Beijing/Shanghai,China
  • Category : economy, business and finance
  • Duration : 3'27
  • Audio Language : Chinese/Nats
  • Source : China Central Television (CCTV)
  • Restrictions : No access Chinese mainland
  • Version : 3
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