key takeaways:
- The USDA reported on July 8 that China bought 472,000 metric tons of U.S. soybeans, the country’s largest daily sale since November 2023.
- The purchases, including several cargoes by COFCO, signal renewed trade momentum following US-China talks and support expectations of a rise in Chinese agricultural imports.
- Additional buying could provide a boost to U.S. farmers ahead of the September marketing season, although tariffs and cheap Brazilian supplies are weighing on demand.
China bought the largest amount of US soybeans since 2023, adding to a wave of buying as agricultural trade picks up between the world’s two largest economies.
The U.S. Department of Agriculture reported sales of 472,000 metric tons of soybeans for delivery to China on July 8, the largest daily export amount to that country since November 2023.
State-owned trading firm COFCO Corp confirmed the purchase after at least five other cargoes were booked overnight for loading mainly between September and October, according to the people familiar with the matter, who declined to be named because they were not authorized to speak to media.
This purchase follows at least six cargoes booked earlier in the week.
Cofco could not immediately be reached for comment.
A cargo of soybeans typically amounts to about 60,000 tons.
(Charlie Riedel/AP)
More on soybean
By the end of last month, the USDA reported that Chinese buyers had committed to 200,000 tons of new-crop American beans. Meanwhile, the latest reported sales were split, with 136,000 tonnes scheduled for delivery in the current marketing year and the balance for the next.
The increase in trade follows the summit between President Donald Trump and Xi Jinping in May, and will boost expectations that Beijing will increase imports of US agricultural goods as both sides act on commitments made under their broader trade footprint.
The White House has said China has agreed to buy at least $17 billion worth of U.S. agricultural products, including at least 25 million tons of soybeans annually by 2028, though Beijing has not publicly confirmed those figures. Chinese officials have said both sides are working to reduce tariffs on some agricultural products and maintain a ceasefire reached last year.
“So far China has started buying what they said they would buy,” Total Farm marketing analyst Naomi Blohm said in a note. “This is not above and beyond the new demand.”
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Additional buying from China will provide support to US exporters and farmers ahead of the new marketing season starting in September. Soybean futures in Chicago have strengthened in recent days on expectations of strong Chinese demand, while traders await any additional policy signals from Washington and Beijing ahead of an expected meeting between Trump and Xi later this year.
U.S. soybeans currently carry an additional 10% tariff compared to rivals, which has kept private crushers on the sidelines. Even without the extra tariffs, soybeans from Brazil’s recently concluded crop are cheaper than U.S. shipments, according to Commodity 3 data.
