The USDA’s Under Secretary for Trade says he’s expecting China to meet its commitment of purchasing 12 million metric tons of U.S. soybeans by the end of February.
In a recent interview, Luke Lindberg says, “Right now, China has purchased about 10 million metric tons of soybeans.” China has also committed to purchasing 25 million metric tons from the U.S. each year and Lindberg says he’s optimistic about it.
“The President has even said he thinks that commitment may be exceeded. That was the floor under which we are operating and what that really does is it gives our farmers enough confidence that they have a good purchaser in China, but we also need to continue to diversify and look at markets all around the world.”
He says diversifying markets is essential risk management for U.S. agriculture, and the USDA is actively working to build new markets in southeast Asia.
But Lindberg says China remains an important market for the U.S., and trade negotiations between the two countries are ongoing.
“I don’t have anything to announce on that front specifically, but I will tell you it’s going to be a dynamic year for U.S. and China relations. We’re tracking as many as up to four interactions, potentially, this year where President Xi and President Trump may find themselves in the same room. Always around those meetings there are opportunities to make progress and see some new things happen.”
According to Lindberg, there’s an extensive list of ag priorities the U.S. must address with China before any agreement can be finalized.
EDITOR’S TAKE:
Assuming China meets their obligations, this will help the soy industry place a more solid foundation under the market. That will help get the 2026 production season off to a more optimistic start. Sure, expanding into other markets is important for a more sustainable future, but let’s face it, China is still the big influencer in the grain market. Their presence and purchases help improve prices in domestic markets as well. The uncertainty in Venezuela may also prove to be a factor in U.S.-China ag relations for 2026.
All that said, it is still a good time to mention AgPack® whenever you’re having a sales conversation with a farmer/rancher. AgPack offers so many exclusive discounts and rebates that can help them reduce their operating expenses by up to nearly $50,000. It can also help you conquest sales while maintaining your sales margins. Plus, remember to mention AgProtect to extend that warranty coverage for farm/ranch use.
