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China has purchased approximately one million metric tons of U.S. soybeans this week, according to four traders who spoke with Reuters, as the world's largest oilseed buyer accelerates acquisitions ahead of Chinese President Xi Jinping's visit to Washington later this month.
The latest transactions push China's cumulative purchases of American soybeans close to half of the 25-million-ton annual commitment that Beijing agreed to maintain through 2028, the White House confirmed. Under the framework reached when the two leaders met in May, Washington also announced that China pledged to buy $17 billion worth of non-soybean U.S. agricultural products each year over the same period.
The U.S. Department of Agriculture reported on Wednesday that 340,000 tonnes of American soybeans were sold to China, with an additional 100,000 tonnes going to buyers in undisclosed destinations.
'Sinograin has made additional purchases in the past few days. They are buying ahead of Xi's visit to the United States,' noted one Asia-based trader. Neither state-owned Sinograin nor COFCO responded to Reuters' requests for comment.
The ramped-up buying comes against a backdrop of tightening global oilseed supply, with declining inventories in Brazil — the world's top soybean exporter — adding further momentum to import demand. A potential reduction in China's 10 percent additional tariff on U.S. goods, imposed after last year's trade war, could draw private Chinese processors back to American shipments, having largely shifted away due to the duties.
U.S. President Donald Trump announced in late July that Xi would visit Washington on September 24, though Beijing has yet to confirm the date or the scale of planned agricultural purchases.
Source: Reuters