China cut imports of American soybeans by 80% in September, as compared to the year before, Bloomberg reports.
The massive drop came just a few months after China set a 25% retaliatory tariff on soybeans, part of the ongoing trade war between the world powers. As the world’s largest importer of soybeans, China is posed to make an impact on the American market.
According to Bloomberg, Brazil—already the world’s largest soybean exporter—saw a boost in shipments where the U.S.’s dropped. The South American country is also posed to become the world’s largest soybean producer this year, surpassing the U.S.
China is expected to import 25% less this quarter due to the trade war, the largest reduction in soybean imports in 12 years. While the nation brought in 24.1 million metric tons of soybeans in the fourth quarter of 2017, it’s only expected to import 18-20 million metric tons this quarter, according to Reuters, with purchases likely from Brazil, Argentina, and Canada.
