China has purchased large shipments of Argentine soybeans and canola, allowing it to postpone purchases of soybeans from the US and rapeseed from Canada.

According to traders, Chinese buyers have contracted at least 10 lots (other reports say 15 lots) or 500,000-750,000 tons of Argentine soybeans after the Argentine government temporarily lifted export duties on the grain, dealing a new blow to US farmers who have lost a key market and are suffering from low prices.

With these actions, China is putting pressure on the US and Canada in trade negotiations, hoping that the governments of these countries will be forced to make concessions under pressure from local farmers.

Traders report that soybean deliveries are scheduled for November, and the purchase price is about $450/t CNF, which is $80-85/t higher than the cost of the November soybean contract on the Chicago SWOT.

The new deals make things worse for American farmers, who are losing billions of dollars at the height of the marketing season due to the lack of soybean exports to China, while South American competitors, led by Brazil, are increasing their presence in the market.

So far, China, the world's largest soybean importer, has not purchased any shipments of the new crop of American soybeans.

This week, the state-owned Chinese company COFCO also purchased up to 9 batches or 550,000 tons of Australian canola, which is 8% of the total volume of canola imports to the PRC last year, which was carried out exclusively from Canada.

However, shipments from Canada stopped after China imposed a temporary 75.8% tariff on Canadian canola on August 12, demanding a reduction in tariffs and the supply of Chinese electric vehicles to Canada.