Chinese state-owned trading firms have purchased another 10 to 13 cargoes of U.S. soybeans, adding to a major round of buying recently and signaling renewed demand from China. The latest purchases are scheduled for shipment between December and March. Combined with 8 to 10 cargoes booked recently, these purchases total an estimated 1.2 to 1.5 million metric tons.
The buying follows weeks of limited Chinese activity and comes after President Donald Trump met with Chinese President Xi Jinping in September. The return of state buyers has helped ease concerns about China’s demand for U.S. soybeans. White House figures indicate China is targeting 25 million metric tons of U.S. soybean purchases during the 2026-27 marketing year. Some estimates suggest purchases have reached around 15 million metric tons, putting China closer to that goal. It’s some encouragement for soybean farmers, though meeting the full target remains an important benchmark.
EDITOR’S TAKE:
Purchasing activity by China is sure to provide much needed price support for the soybean market. Assuming they follow through and meet the purchasing target, U.S. farmers will definitely benefit from the added demand. China, for several years now, has been the number one customer for U.S. soybeans and it is very noticeable whenever they are absent from the market.
Soybean farmers, despite rising input costs, are experiencing better than expected yields, prices and government payments. They will be looking for ways to reduce their tax burden. One method is by purchasing investments that make their operation more efficient and profitable. An example might be a new truck or SUV and then claiming a 100% deduction on their taxes through IRS Section 179. Be sure you are up to speed and can talk about this approach when those farmers walk into your showroom. By the way, watch for the handbook from The Certified Ag Group that gives you pointers on using section 179.
