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China opens soymeal market to Argentina

ReutersBUENOS AIRES (Reuters) — China will allow the import of soymeal livestock feed from Argentina for the first time under a deal announced by Buenos Aires on Tuesday, an agreement that will link the world’s top exporter of the feed with the top global consumer.

The pact will be signed by Argentine and Chinese officials in Buenos Aires on Wednesday, Argentina’s agriculture ministry said in a statement. Last month Chinese officials inspected Argentine soymeal factories in the run-up to signing the pact.

Argentina had tried for years to break into the Chinese market, the biggest consumer of the meal it uses to feed its massive hog herd. China, with its own crushing industry to protect, had steadfastly resisted.

The U.S.-China trade war, however, strengthened Argentina’s hand, prompting China to expand its soymeal import options, market sources say.

“This is a historic agreement,” Gustavo Idigoras, president of Argentina’s CIARA-CEC chamber of grains exporting companies told Reuters, though he added the deal still required a two-step process of plant authorizations and then registrations that could take several more months.

“Shipments aren’t expected to start immediately.”

Argentina, the top global exporter of processed soy, expects to export a total of 26 million tons of soymeal this year globally, and 8.5 million tons of raw beans.Speech

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