China has procured approximately 1 million metric tons of U.S. soybeans this week, four traders told Reuters, as the world’s top oilseed buyer steps up purchases ahead of Chinese President Xi Jinping’s visit to Washington later this month.
The recent acquisitions bring Beijing’s total purchases of American soybeans to nearly half of the 25 million tons the White House said China committed to buying annually through 2028.
While the orders could help bolster trade and diplomatic ties with Washington, the buying also coincides with tightening global oilseed supplies amid dwindling inventories in top exporter Brazil.
open image in gallery“There have been more purchases made by Sinograin in the past few days,” said one Asia-based trader. “They have been buying before Xi’s visit to U.S.”
State-owned buyers Sinograin and COFCO did not immediately respond to requests for comment.
On Wednesday, the U.S. Department of Agriculture reported sales of 340,000 tons of U.S. soybeans to China, alongside an additional 100,000 tons to undisclosed destinations.
open image in galleryChina maintains a 10% additional tariff on all American goods, including agricultural products, following a tit-for-tat trade conflict last year. A reduction in the soybean tariff could encourage private Chinese crushers to return to U.S. supplies after tariffs largely shut them out of the market.
Following a meeting between the two leaders in May, Washington said China had agreed to buy $17 billion worth of non-soy U.S. agricultural goods annually through 2028, while upholding its pledge to purchase 25 million metric tons of U.S. soybeans each year over the same period.
In late July, President Donald Trump said Xi would visit Washington on September 24. China has not confirmed the visit date or the volume of any planned purchases of U.S. soybeans or other agricultural commodities.