China bought at least four U.S. soybean cargoes after a summit between President Donald Trump and his counterpart Xi Jinping, as Beijing moves to boost purchases of American farm goods following a trade truce.
The cargoes are for shipment later this year and in early 2026, and the total volume is about 250,000 tons. The soybeans will be shipped from the Pacific Northwest and U.S. Gulf.
President Trump said China will purchase a “tremendous” amount of American soybeans after a meeting with Xi to hammer out a wide-ranging trade deal. Futures in Chicago rallied to the highest level in almost 16 months in anticipation of a trade breakthrough.
China booked its first U.S. soybean cargoes just days before the summit between Trump and Xi, lifting a months-long pause that had hurt American farmers. The U.S. trade with China was worth more than $12 billion last year, but Beijing has sought to diversify its supply in recent years.
U.S. Agriculture Secretary Brooke Rollins said in a post on X that the Asian nation agreed to buy at least 12 million tons this marketing year, providing some context around volumes after the summit ended without those details. Sales would rise to 25 million tons annually over the next three years, she added, which would bring them closer to typical levels.
“That’s good news for farmers, assuming the agreement holds, and indicates an intention on both sides for ag trade to go back to normal,” said Even Pay, director at Beijing-based advisory firm Trivium China.
Traders and crushers expect China to roll back an additional 10% tariff on U.S. soybeans, which was implemented earlier this year as part of countermeasures against Washington — though Beijing hasn’t been explicit on this yet. However, even with that cut, American cargoes would still incur 13% duties, making them uncompetitive with Brazil, the Asian nation’s top supplier.
China’s recent purchases have likely been made by state-owned firms, including Cofco Group, people familiar said. More buying is expected, but there’s little incentive for commercial crushers in China to turn to U.S. supplies just yet because it remains unprofitable, even with some tariffs removed.
EDITOR’S TAKE:
We’re keeping our fingers crossed that China will follow through with the negotiated purchases. As reported in a recent issue of the AIR, China has little need for additional soybeans currently as it has built up ample supplies with record shipments from South America. All that said, some purchases are far better than none at this juncture. China has been a very good customer in the past and with any luck and some good solid agreements in place, they will be again.
It is great news that the market price for soybeans in the U.S. reacted favorably to the most recent news. This will go a long way towards relieving any financial pressure on our soy farmers. Also, reports of high demand for domestic soybean crush have added to market optimism in recent days. All totaled, things are looking up for our farmers/ranchers. Expect them to maybe be a little skeptical and cautious at first, but with any luck they will be in a buying mood soon. Continue to promote AgPack® savings and put your inventory on AgTruckTrader.com® where they can find what they’re looking for.
