China Buys One Million Tons of U.S. Soybeans

Chinese state-run trading companies purchased 14 to 16 cargoes of U.S. soybeans on Friday, totaling approximately one million metric tons. The acquisitions were primarily executed by Sinograin, which also auctioned off about half of its 504,000 tons of imported soybeans to make room for the new shipments scheduled to arrive in October.

These purchases occur amid a drop in soybean prices and precede a planned visit by President Xi Jinping to the United States on September 24. The activity aligns with a White House commitment announced in October for China to purchase 25 million tons of U.S. soybeans annually through 2028.

Market participants are now monitoring whether the Chinese government will remove tariffs on U.S. soybeans, a move that would allow private crushers to enter the market.