In an unexpected move, Argentina has seriously disrupted any possible new crop soybean purchases to be made by China from the United States.
That's according to analyst Michael Cordonnier of Soybean and Corn Advisor Inc. in Illinois.
Just as the North American soybean industry was pinning its hopes on a new China-U.S. trade deal, as of Sept. 22 Argentina has temporarily eliminated its agricultural export tax until Oct. 31.
Cordonnier said the tax had been 26 per cent.
He estimates Argentine farmers are currently holding 20 million tonnes of soybeans along with 12 million tonnes of corn.
He says presently, China continues to buy soybeans from Brazil “like crazy,” noting several trade participants believe China has enough already to get through to the end of December.
