Incoming orders: Soybeans being moved to storage in Massillon, Ohio. China’s buying spree of US soybeans has reassured American exporters and farmers.— Reuters
Beijing: China has bought at least eight million tonnes of US soybeans this year, according to people familiar with the matter, putting the world’s top importer on track to meet a pledge it made two months ago as part of an apparent trade truce with Washington.
State-owned buyers have continued to book US cargoes into late December, the people said, asking not to be named as they are not authorised to discuss the purchases.
That extends a buying spree that began in October and maintains a pace that has reassured American exporters, otherwise wary that Beijing’s commitment might slip amid limited visibility and unclear deadlines.
The shipments booked so far are mostly for loading between December and March, the people said.
The White House said immediately after talks between President Donald Trump and Chinese counterpart Xi Jinping that China had pledged to buy at least 12 million tonnes of US soybeans by the end of this year.
US officials later clarified the deadline was in fact the end of February.
Beijing has not confirmed the commitment, but the Chinese government has moved to reduce tariffs on the crop and lifted import bans on three American exporters.
The return of Chinese buyers is welcome news for US exporters, and a reminder that buying patterns can change fast – but it is not yet a full reset.
Even as Beijing takes US shipments, state-owned firms have bought large quantities of beans from Brazil and Argentina, the people said. Commercial buyers in particular have stayed on the sidelines when it comes to US purchases.
Almost 80% of Brazil’s soy went to China last year, with exports through November climbing 16% compared with the previous year. That trade continued in December, even in a period when sales are seasonally weaker, and Brazil’s upcoming harvest is forecast to be a record.
“We cannot confirm from China’s side that anything beyond the 12 million tonnes has been pledged,” said Ben Buckner, grains and dairy analyst at AgResource Co.
The brokerage wrote in a note this week that China was seeking shipments and could reach a “soft target” of 10 million tonnes for 2025, with an additional two million tonnes this month.
Without a formal deal confirmed by both sides, traders said uncertainty over future sales is reinforcing pressure on soybean prices. Futures in Chicago eased in the year’s final trading session Wednesday, declining about 7% for December, the worst monthly performance since July 2024.
Matt Bennett, an Illinois corn and soy farmer, said many farmers have been “pleasantly surprised” with the steady flow of purchases from China so far, but added there has been frustration with the direction of soybean prices.
“From our vantage point, once you quantify that they’re going to buy 12 million tonnes, you need something in excess of that to get everyone excited,” Bennett, co-founder of farm advisory AgMarket.Net, said in a phone interview.
Trump announced earlier last month US$12bil in relief for US farmers, but growers are still waiting for the administration to provide details on how much they will get in payments promised by February. — Bloomberg
