The Chinese government gives the green light for five companies to buy up to 3 million tons of US soybeans
The purchase will be free of retaliatory import tariffs as trade negotiations are set to continue next week, Bloomberg reports citing people familiar with the situation.
The action here will be part of a goodwill gesture towards the US and there could be a second round of exemptions depending on how talks progress.
As mentioned before, agricultural purchases is something China will have no problem with in dealing with the US on trade but it is the more structural issues that are causing the disagreement between both parties. As such, don't expect markets to really jump on the news here.
