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China might exempt tariffs on U.S. soybeans

There are reports China plans to exempt additional tariffs on soybeans imported from the U.S.

According to the international publication Agri-Census, the Chinese government has offered its soy crushers tariff-free quotas on up to 10 million tons ahead of the next round of trade talks in mid-November.

China recently suspended a 30 percent tariff on 20 million tons of U.S. soybeans and has reportedly pledged to purchase as much as $50 billion of U.S. agricultural products.

CHS Hedging director of producer brokerage Kent Beadle tells Brownfield that’s a lofty target.

“It’s really difficult to actually come up with a dollar figure of individual agricultural commodities that add up to that value, even with the pork that they need and excess pork we have. And even with the soybean carryout we have.”

Soybean futures closed slightly higher today in reaction to positive trade news as well as wet weather in the Midwest halting harvest once again.