Media365
China has bought around 1 million metric tonnes of US soybeans this week, stepping up purchases ahead of President Xi Jinping’s expected visit to Washington later this month, Reuters reported on Thursday, citing four traders.
The purchases, equivalent to 14-15 cargoes, were booked by Chinese state stockpiler Sinograin for shipment from US Gulf terminals between December and February, the report said.
The latest deals take China’s total US soybean purchases to nearly half of the 25 million tonnes that the White House said Beijing had committed to buying annually through 2028.
The purchases come as Xi prepares for a series of high-level diplomatic engagements before his expected US visit. Xi is expected to attend the Brics summit in New Delhi, although Beijing has not formally confirmed his participation.
If confirmed, the India visit would be Xi’s first since 2019 and would come as Beijing and New Delhi work to stabilise ties after years of tensions. The two countries have resumed direct flights and taken steps to ease some investment restrictions, while differences over trade, visas and their border remain.
The US soybean purchases could provide an early indication of the economic issues likely to feature in the broader US-China discussions. Agriculture has been a key part of efforts by Washington and Beijing to manage trade tensions.
More from BusinessThe US Department of Agriculture on Wednesday reported sales of 340,000 tonnes of US soybeans to China and another 100,000 tonnes to unknown destinations.
China is the world’s biggest soybean importer and uses the crop mainly for animal feed and soybean oil. Its purchases from the US are also rising as Brazilian supplies tighten towards the end of the South American marketing season.
For Washington, stronger Chinese soybean demand could support US farmers and agricultural exporters. For Beijing, securing supplies for the coming months is important as it balances food security and trade commitments with the broader US-China relationship.
