(July 7): China has purchased more soybeans from the US, according to people familiar with the matter, as the key agricultural trade gains momentum following a summit between the leaders of the two nations in May.
State-owned firm Cofco has booked at least six cargoes of US soybeans for loading between September and October, said the people, who asked not to be named as they are not authorised to speak to the media. The US Department of Agriculture said last month that Chinese buyers had already committed to buying 200,000 tonnes of American beans.
Cofco Group didn’t immediately respond to requests for comment. The USDA also did not confirm any new exports, although the agency reported a sale of 105,000 tonnes of US soybean meal to Colombia.
The White House said China has agreed to buy at least US$17 billion of agricultural products, in addition to at least 25 million tonnes of soybeans each year through 2028, after the summit between US President Donald Trump and his counterpart Xi Jinping. Beijing hasn’t confirmed any of the numbers stated by the US.
Soybean futures in Chicago climbed to US$11.98 a bushel, the highest intraday level in over a month, before turning narrowly lower. Soybeans on Monday surged 3.9%, the biggest gain since June 2023.
Earlier this year, China fulfilled a previous pledge to purchase 12 million tonnes of American soybeans after holding off buying for much of the season as the Asian nation sought a bargaining chip during negotiations over tariffs.
See also: EU aims to cut dependency on soy, oilseed imports for livestock
Beijing and Washington are seeking to roll back duties on some agricultural products after recent talks, China’s Ministry of Commerce said last week, as they look to preserve a broader trade truce struck last year. Trump said recently he expects to meet President Xi again in September.
As US farmers await more sales to China, sentiment among growers fell for the third straight month, with the complaints over high costs, according to Purdue University and the CME Group’s June survey released Tuesday.
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