China buys more Argentine soymeal as feedmakers seize on cheaper prices, sources say

By Ella Cao and Naveen Thukral

BEIJING/SINGAPORE, Aug 1 (Reuters) - A Chinese buyer has signed a deal this week to import 30,000 metric tons of Argentine soymeal, as feed producers move to lock in cheaper supplies from South America, two trade sources told Reuters on Friday.

The cargo, priced at $345 per metric ton, including freight, is scheduled for shipment between September and October, the sources said.

This marks the third such deal Reuters reported since June, when Chinese buyers booked the first bulk cargo, years after Beijing approved Argentine soymeal imports in 2019.

Argentina's soymeal is currently priced below domestically crushed soymeal, sources said, with competitiveness likely boosted after the Argentine government cut export taxes on soymeal down at 24.5% from previous 31%.

"The tax reduction lowers export costs, making Argentine soymeal more attractive globally," said Johnny Xiang, founder of Beijing-based AgRadar Consulting.