Key facts
- China has significantly increased its purchases of U.S. soybeans following a summit between President Trump and President Xi Jinping.
- The purchases are part of a commitment to buy at least 25 million tons of soybeans annually through 2028.
- Buyers capitalized on lower prices ahead of President Xi's expected visit to the U.S. in September.
- The most active soybean contract fell 5.2% last week.
- China has also agreed to buy at least $17 billion of additional U.S. agricultural products annually.
- A Chinese diplomat criticized trade wars and encouraged collaboration between the two countries.
China has significantly increased its purchases of U.S. soybeans following a summit between President Trump and President Xi Jinping in May. This accelerated pace of buying, with a number of cargoes booked last week, is seen as a move to take advantage of lower prices and meet commitments made to Washington.
According to reports, China has committed to purchasing at least 25 million tons of U.S. soybeans annually through 2028, and an additional $17 billion of U.S. agricultural products each year. The recent purchases were made by companies like Sinograin, with premiums paid over the Chicago Board of Trade contract for shipments from the U.S. Gulf and Pacific Northwest.
The most active soybean contract saw a 5.2% decline last week, contributing to the attractive pricing for buyers. A Chinese diplomat, Wang Baodong, commented that trade wars have no winners and encouraged collaboration between the U.S. and China to foster a better future for agricultural trade.
Meanwhile, China has also announced a package of legal and trade countermeasures against the U.S., including a national security investigation and tighter export reviews for drone technology. While these measures are not directly aimed at agricultural products, they signal a more assertive response to U.S. restrictions.
Despite the recent surge in purchases, U.S. soybean exports to China in 2025 are projected to be lower than in 2024 and below historical averages, even if China meets its annual commitment. The trade deal aims to end a period of near-zero U.S. soybean exports to China amid retaliatory trade measures.