Soyabean markets slid after the US and China signed a long-awaited preliminary trade agreement, reflecting uncertainty about Beijing’s promises to purchase more farm goods.
The oilseed has historically been the biggest US farm export to China, which uses it to make livestock feed and cooking oil.
China’s government on Wednesday committed to imports of at least $80bn worth of US farm goods over the next two years, or an average of $40bn a year, the US Trade Representative’s office said. The list includes bulk commodities such as soyabeans and cotton as well as consumer products such as dietary supplements and wine.
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