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Investing.com -- Amid escalating trade tensions with the US, Chinese soybean crushers have significantly increased their purchases of Brazilian soybeans. According to Bloomberg, citing individuals familiar with the situation, importers bought at least 40 cargoes from Brazil in the first half of this week, capitalizing on a recent dip in Brazilian prices.
The heightened Sino-US tensions have made the purchase of US crops less viable. Beijing has sought to diversify its agricultural purchases in recent years, increasing its purchases from Brazil, which is now its largest soy supplier. Despite this, soybeans remain America's top agricultural export to China. However, the trade dispute intensified this week, with President Donald Trump raising duties on China to 125% in response to Beijing's plan to retaliate with an 84% tariff.
The majority of these shipments are scheduled for delivery in May, June, and July. The volume is equivalent to at least 2.4 million tons, almost one-third of the average volume China usually processes in a month. Chinese buyers typically rely on Brazilian supplies starting from February when South American exports dominate the market. However, this week's buying surge is unusually large and rapid.
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