Why the EU Was Already Likely to Import More U.S. Soybeans
- Even without latest concessions, global soy trade is changing
- China tariffs will probably mean more U.S. cargoes for EU
Soybeans are unloaded from a grain truck at a DeLong Co. facility in Channahon, Illinois.
Photographer: Daniel Acker/Bloomberg
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The European Union will import more U.S. soybeans as part of a new accord to avoid an all-out trade war. Yet the bloc was already likely to take more American shipments.
That’s because the 25 percent tariff China slapped on U.S. soy imports earlier this month promises to reshape the global market for the commodity. The U.S.-China tiff means it’s likely that Brazil, the No. 2 producer, will end up selling more soy to China as a result. That’s something that traders anticipate, based on the higher price Brazilian soy is fetching over U.S. supplies.