China May Boost Soybean Production This Year to Hedge Against US Tariff Hikes
Zhang Yushuo
/SOURCE : yicai
China May Boost Soybean Production This Year to Hedge Against US Tariff Hikes

(Yicai Global) Jan. 16 -- China is  expected to enlarge its soybean planting area this year to cope with the  potentially higher tariffs caused by trade frictions with the US.  Prices are likely to compete with imported produce, according to the  agriculture ministry.

As the area expands, the supply of domestic soybeans will increase steadily, Tang Ke, a market chief at the Ministry of Agriculture and Rural Affairs said at a press conference today.

"The next few months will be a key  planting period for the main soybean producing areas in northeastern  China," Tang said. The ministry will track domestic and international  production and market changes closely, release timely information about  prices and demand, and offer policy support to guide market  expectations.

This year, Argentina is expected to  increase its soybean production 17 million tons from last year while the  US has a lot of supply too, according to Tang. However, weather changes  in South America may affect pricing. 

Market analysts expect Chinese farmers to  get back to US soybean sellers and resume buying, as trade prospects  started to look clearer in early December when the two countries agreed  on a 90-day trade truce.

Editor: Emmi Laine 

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Keywords: Agriculture , Soybean , Harvest