Key facts
- Chinese state traders purchased approximately 1 million tons of U.S. soybeans on Friday.
- Chinese state traders purchased nearly 500,000 tons of U.S. soybeans on Monday.
- These purchases are occurring ahead of an expected U.S. visit by President Xi Jinping.
- China committed to purchasing 12 million metric tons in 2025 and at least 25 million metric tons annually through 2028.
- Total marketing year exports to China are still lagging previous years despite a Jan-Mar increase.
Chinese state trading companies have recently made significant purchases of U.S. soybeans, acquiring nearly half a million tons on Monday and approximately one million tons on Friday. These transactions are occurring as prices are lower and ahead of an anticipated visit by Chinese President Xi Jinping to the United States.
The U.S. Department of Agriculture confirmed the recent purchases. This resumption of buying follows a period in 2025 when China halted U.S. soybean imports during tariff negotiations with the Trump administration, opting instead for supplies from South American partners.
Under a trade agreement, China committed to purchasing 12 million metric tons of soybeans in 2025 and at least 25 million metric tons annually through 2028. While exports from January to March showed a 57% increase compared to the previous year, the accumulated total for the current marketing year, from September to March, indicates that China's share of U.S. soybean exports is less than 30%, about half of what it was in prior years.
Experts note that while there have been positive movements in trade relations, the long-term outlook for farmers remains challenging. The cost of planting crops remains high, and it is uncertain whether China will fully meet its purchase commitments. Market prices have improved slightly, but the ultimate fulfillment of the trade agreement is still under scrutiny.