NASHVILLE, Tenn. (RFD-TV) — China is back in the U.S. soybean market. Balance sheets show China’s state-owned COFCO reportedly booked three U.S. soybean cargoes for the December-January shipment — about 180,000 metric tons — marking their first purchase of U.S. beans this year. However, that is a small amount compared to years past.
However, that is a small amount compared to years past. Looking back to the first week of October 2021, China purchased 1.2 million metric tons of beans. The following week, it booked another 1.7 million metric tons. This morning’s sale was reported by several outlets, including Bloomberg and Chinese state media.
USDA data remains on hold due to the government shutdown.
Today’s soybean announcement comes amid rapid market moves. It also comes just 24 hours before a high-stakes meeting between President Donald Trump and Chinese President Xi Jinping, which will take place in South Korea.
In a press appearance earlier this week, Treasury Secretary Scott Bessent said the framework is in place for the two sides to begin moving forward, including a substantial purchase of U.S soybeans by China. That news rocked the soybean markets, sending them up by double digits in a matter of hours earlier this week.
While China shifted heavily to Brazilian supplies earlier this year, Treasury Secretary Scott Bessent had previously signaled China’s willingness to resume “substantial” U.S. purchases for years, pending broader trade normalization.
Traders say China has heavily booked Brazilian supplies through November and still prefers Brazil’s higher-protein beans, tempering expectations for a wholesale pivot back to U.S. origins. Even so, spot parity between the U.S. and Brazil offers the U.S. a window to load in the Pacific Northwest if diplomatic momentum continues. Market chatter also suggests state reserve buying could add to U.S. demand into spring, depending on price spreads and policy goals.
Agriculture traders caution that the commitment is still modest and book-to-ship details remain unclear. Still, the orders sparked a rally in Chicago soybean futures, lifting export-basis expectations in the Gulf and PNW.
Shipping will be another area Presidents Trump and Xi are likely to address following President Trump’s move to place extra port fees on Chinese-built ships, which took effect this month. In turn, China slapped its own port fees targeting U.S.-owned and operated vessels, but those fees did not apply to U.S. ships made in China.
