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Chinese state-owned traders buy 8-10 cargoes of US soybeans for December onwards, marking the first such deals since the Trump-Xi summit as trade tensions and US midterm pressures keep agricultural exports in focus
China’s state-owned traders have bought up to 650,000 tonnes of US soybeans, marking the first such purchases since the September summit between Donald Trump and Xi Jinping as Washington seeks to revive agricultural trade ties.
The Chinese firms purchased 8-10 Panamax cargoes this week, with shipments scheduled from December onwards, Reuters reported on Wednesday. Each cargo carries around 65,000 metric tonnes of soybeans.
The purchases could offer some relief to American farmers as Trump faces the November midterm elections, with agricultural exports to China remaining a key issue in the trade relationship between the world’s two largest economies.
China’s soybean purchases and Trump’s midterm challenge
US soybean farmers have been among those affected by trade tensions between the US and China. China is a major buyer of American agricultural products, and disruptions to that trade have left US exporters looking for ways to restore access to the Chinese market.
The latest deals come as the Trump administration seeks to secure Chinese purchases of American goods and demonstrate progress in trade negotiations. A recovery in soybean exports could help US farmers and provide the administration with a positive development ahead of the midterm elections.
Before the latest purchases, China had bought about 13.7 million tonnes of US soybeans, already more than halfway towards the 25 million-tonne purchase target for the 2026/27 marketing year announced by the White House, Reuters reported.
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The purchases follow the September summit between Trump and Xi in Washington, after which the two countries announced a proposed list of tariff reductions. Soybeans, however, were excluded from that list, dampening expectations that private Chinese soybean crushers would return to the US market for additional supplies.
The latest deals were made by state-owned trading firms, rather than private buyers, according to the traders cited by Reuters.
According to the report, the companies paid premiums of $3.10 to $3.20 per bushel over the January Chicago Board of Trade soybean futures contract.
Weak Chinese demand remains a concern
China’s soybean imports fell in September despite the country’s continued importance in global agricultural trade.
The country imported 11.88 million tonnes of soybeans last month, down 7.7 per cent from the same period a year earlier, according to data from the General Administration of Customs of China.
There are also signs that China’s state reserves are not absorbing all the supplies offered at auction. On Tuesday, Sinograin sold 40.5 per cent of the 518,000 tonnes of imported soybeans offered, data from consultancy Mysteel showed. Traders expect further auctions in the coming weeks.
