China has purchased approximately 1 million metric tons of U.S. soybeans this week, according to four traders who spoke with Reuters. This purchase comes as China, the world's largest buyer of oilseeds, increases its soybean acquisitions ahead of an upcoming visit by Chinese President Xi Jinping to Washington. The recent purchases bring China’s total soybean purchases from the U.S. to nearly half of the 25 million metric tons the White House said China had committed to buying annually through 2028. This increase in soybean purchases may help strengthen trade and diplomatic ties with the United States, especially as global oilseed supplies tighten and inventories in Brazil—the top exporter of soybeans—diminish.
A trader based in Asia noted that state-owned buyers Sinograin and COFCO have been making more purchases in recent days, timing their acquisitions before Xi's visit to the U.S. Neither Sinograin nor COFCO responded to requests for comment. On Wednesday, the U.S. Department of Agriculture reported sales of 340,000 tons of U.S. soybeans to China, along with an additional 100,000 tons destined for unspecified locations. Despite these recent purchases, China continues to impose a 10% additional tariff on all American goods, including agricultural products, as part of a trade dispute that began last year. A reduction in this soybean-specific tariff could encourage private Chinese processors to return to U.S. soybean supplies, which have largely been excluded from the market due to the tariffs.
Following a meeting between U.S. President Donald Trump and President Xi in May, the U.S. government said China had agreed to buy $17 billion worth of non-soy U.S. agricultural goods annually through 2028, in addition to maintaining its commitment to purchase 25 million metric tons of U.S. soybeans each year. President Trump announced in late July that Xi would visit Washington on September 24. However, China has not officially confirmed the visit date or the specific volume of any planned purchases of U.S. soybeans or other agricultural commodities. The timing of the purchases and the potential visit highlight the ongoing efforts by both countries to improve trade relations and manage the complexities of global agricultural markets.
China Increases U.S. Soybean Purchases Ahead of Scheduled Xi Jinping Visit
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