China buys more than 300 thousand tons of US soybeans

Chinese state trading company COFCO acquired at least five shipments of soybeans from the United States this Monday, totaling at least 300,000 metric tons. The volume is expected to be shipped between September and November this year, according to two North American operators familiar with the negotiations.

Industry sources indicate that the final volume could be even higher as new operations are settled. One of the operators estimated that the total amount could reach up to 10 ships, around 600 thousand tons, with shipments scheduled both through ports in the Gulf of Mexico and those on the Northwest Coast of the USA.

Diplomatic Relations and Commercial Agreements

The acquisitions come in the wake of recent trade negotiations between Washington and Beijing. According to the White House, the talks resulted in commitments from China to purchase 25 million tons of North American soybeans annually, in addition to increasing imports of other agricultural products from the US.

Reinforcing the bilateral agenda, US President Donald Trump announced this Monday (06) that Chinese President Xi Jinping will make an official visit to the White House around the end of September.

The Market Context and Competition with Brazil
China is the world's largest importer of soybeans and the main external buyer of North American grain. However, the Asian country had been reducing the pace of purchases in the USA over the last year, a direct reflection of trade tensions between the two powers and the ample supply of cheaper grains coming from Brazil, the USA's main competitor in the sector.

Data from the US Department of Agriculture illustrate the decline:

Current business year (through August 31): Reported US soybean export sales to China are down 47% compared to the same period last year.

Cycle 2026/27 (starting on September 1st): Until June 25th, the volume of advance sales registered by the USDA was just 200 thousand metric tons.

This Monday's robust purchases signal an attempt to revive this trade flow in light of new political directions between the two nations.

(Reporting by Karl Plume in Chicago; Editing by Bill Berkrot)

Source: CNN