newsdog Facebook

US soy, gas unattractive to China, despite trade truce

News Summed Up 2018-12-06 05:30:00

BloombergChina might be girding itself to buy more US gas and soybeans amid easing trade tensions, but the sums just do not add up at the moment. North Asia’s gas buyers, which are well stocked for winter, are awaiting colder weather before increasing spot purchases, traders said over the past month. A glut of supply and lower crude oil prices, to which most liquid natural gas (LNG) shipments are priced, have pushed the benchmark Japan/Korea LNG Marker to the lowest since July, a sign of weakening demand. And even if China were to seek a short-term supply deal, it would be easier to turn to Australia or Malaysia. It would not make much economic sense for China to boost US soybean imports now.