China Makes Waves with Massive U.S. Soybean Purchase

China fulfilled its pledge to buy 12 million metric tons of U.S. soybeans by February, as Sinograin and COFCO were key buyers. This move followed an October trade truce, with imports resuming after a four-month halt due to the U.S.-China trade war.

China has successfully fulfilled its commitment to purchase 12 million metric tons of U.S. soybeans, meeting the target set by a U.S.-stated pledge. This significant trade action came after a late-October truce eased tensions and spurred renewed buying, according to three industry insiders speaking to Reuters.

The purchase marks a significant comeback for U.S. soybeans, which saw four months of zero imports from China amid a heated trade war. The state-owned companies, Sinograin and COFCO, led the acquisitions, while private crushers continued to source more competitively priced supplies from Argentina and Brazil.

Despite reaching the set target, further purchases from the U.S. are deemed unlikely until the new crop arrives in September unless the prices can compete with South American offerings. The bulk of the soybeans is earmarked for shipment between December and May, with some destined for state reserves following recent auctions by Sinograin to create space for these imports.