China plans to store cargoes of American soybeans bought earlier this year that are yet to be delivered, as the trade war between Washington and Beijing escalates, according to people familiar with the matter.
The soybeans will be sent to boost state stockpiles rather than being processed, said the people, who asked not to be identified as they aren’t authorized to speak publicly. While the majority of the purchases were already destined for state reserves, some were being crushed.
China purchased U.S. soybeans from December to March after the two nations had reached a temporary trade truce. Since talks soured, Chinese buyers have turned to South American supplies and state-run companies don’t expect to receive any further orders to buy U.S. soybeans.
Nobody answered a call to state stockpiler Sinograin. A fax sent to China’s commerce ministry wasn’t immediately responded to. Reuters reported the news earlier.