Kenneth Afor with wire report
The decision by the Chinese government to give a free waiver to its importers to import soybeans from the United States has resulted in a low trade of the commodity for investors on Tuesday in Chicago.
China had earlier given the waiver to importers as a kind gesture in the ongoing trade talks with the U.S. with the hope that the talks would yield substantial result and also that price of the commodity at the global market would normalize, but prices are in their low at the start of trading.
Meanwhile, at the early stage of trading, prices were a bit high, but it later stayed below the trading point of last week.
However, the reason for the downward price was as a result of the mad rush of the commodity by the Chinese in the wake of the announcement of the imposition of trade tariffs by both countries on their goods.
Market analysts revealed that Chinese buyers had reportedly starched about 2 to 3 million tons of the commodity before the trade tensions for the raining days.
According to market analysts, their projections suggest that more purchases might come from the Chinese adding that last year alone before the trade war began, a total of 36 million tons of soybeans was shipped to China and also coupled with the holidays coming up in commemoration of the 70th anniversary of Communist party more of the commodity will be needed.
Meanwhile, reports were high last week that US President Donald Trump is much more concerned about China getting a hold of U.S. agriculture, an addition of unclarified short-term goals in the trade negotiations with the Chinese government.
However, analysts have hinted that this might be a good opportunity for the Chinese government to extend an olive branch to Trump to continue with the trade talks.