INTERNATIONAL
China hits 12 million ton US soybean target pledged in trade truce
A worker wearing a face mask works on a production line manufacturing soybean-based food products at a factory in Hefei, Anhui province, China. - REUTERS/Filepic
BEIJING/SINGAPORE: China has bought about 12 million metric tons of U.S. soybeans, fulfilling a U.S.-stated pledge to purchase that volume by the end of February, three traders told Reuters on Tuesday, after a late-October trade truce spurred buying.
AI Brief
As buyers shunned North American supplies amid a trade war, China recorded no imports from the United States for four consecutive months from last September, taking U.S. market share down to 15% from 21% in 2024.
But the 12-million target was met last week after bulk purchases by state stockpiler Sinograin and state trader COFCO, which were the only buyers of U.S. beans, as private crushers continue to favour cheaper supplies from Argentina and Brazil.
"Further purchases of U.S. soybeans are unlikely until the next U.S. new crop in September unless prices are competitive with South American soybean prices," said one of the sources familiar with details of the shipment.
All the sources spoke on condition of anonymity, as they are not authorised to speak to the media.
Sinograin and COFCO did not immediately respond to requests for comment.
China resumed U.S. soybean purchases after the two countries' leaders met in late October, with the White House saying China had also agreed to buy at least 25 million metric tons annually over the next three years, starting in 2026.
The purchased U.S. soybean cargoes, amounting to 12 million tons, are set for shipment between December and May, the sources said.
In early December, Reuters reported that at least six bulk cargo vessels were scheduled to load soybeans at U.S. Gulf Coast terminals for China, with a seventh already on the way.
One of these vessels, Ocean Harvest, is set to arrive at the eastern port of Zhangjiagang in about a week, according to ship-tracking data from LSEG and Kpler.
Much of the purchased volume is probably destined for state reserves. In recent weeks, Sinograin has held four auctions in an apparent move to free up storage for U.S. soybean shipments.
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AI Brief
- China hit its 12-million-ton US soybean target thanks to bulk buying by Sinograin and COFCO, even as private crushers avoided costly US beans.
- US soybean imports had previously dropped to zero for four months amid the trade war, with China's reliance on US supplies falling from 21% to 15%.
- Most of the purchased beans are expected to go into state reserves, with shipments scheduled from December to May and vessels already en route.
As buyers shunned North American supplies amid a trade war, China recorded no imports from the United States for four consecutive months from last September, taking U.S. market share down to 15% from 21% in 2024.
But the 12-million target was met last week after bulk purchases by state stockpiler Sinograin and state trader COFCO, which were the only buyers of U.S. beans, as private crushers continue to favour cheaper supplies from Argentina and Brazil.
"Further purchases of U.S. soybeans are unlikely until the next U.S. new crop in September unless prices are competitive with South American soybean prices," said one of the sources familiar with details of the shipment.
All the sources spoke on condition of anonymity, as they are not authorised to speak to the media.
Sinograin and COFCO did not immediately respond to requests for comment.
China resumed U.S. soybean purchases after the two countries' leaders met in late October, with the White House saying China had also agreed to buy at least 25 million metric tons annually over the next three years, starting in 2026.
The purchased U.S. soybean cargoes, amounting to 12 million tons, are set for shipment between December and May, the sources said.
In early December, Reuters reported that at least six bulk cargo vessels were scheduled to load soybeans at U.S. Gulf Coast terminals for China, with a seventh already on the way.
One of these vessels, Ocean Harvest, is set to arrive at the eastern port of Zhangjiagang in about a week, according to ship-tracking data from LSEG and Kpler.
Much of the purchased volume is probably destined for state reserves. In recent weeks, Sinograin has held four auctions in an apparent move to free up storage for U.S. soybean shipments.
Your gateway to global news, insights, and stories that matter.