China’s renewed appetite for US soybeans marks a clear shift in the agricultural trade landscape after a brief pause in activity.
The move follows a recent trade truce reached late last month, restoring momentum in a supply chain that had been running on uncertainty.
The decision to resume buying signals a practical step from Beijing at a time when traders and exporters were watching for signs of action.
With fresh cargoes now lined up for late this year and early next year, the development offers traders a clearer picture of how the two countries are navigating the next phase of their agricultural relationship.
Cofco Group, China’s state-owned agriculture trader, booked nearly 20 cargoes of American soybeans on Monday, as per a Bloomberg report.
As per the report, the shipments amount to almost a million tons.
Delivery is planned for December and January, with cargoes departing from Pacific Northwest ports and Gulf Coast terminals in the US.
The buying marks China’s return to the US soybean market after a temporary halt.
Market moves
News of the purchases was first reported by brokerage AgResource Co and triggered a sharp market reaction.
Chicago soybean futures rallied as much as 3.2% on Monday following the announcement.
Prices eased during Asian hours on Tuesday, but the initial jump showed how closely markets track any signals from Beijing.
Soybean trade between the US and China was valued at more than $12 billion last year, making it one of the foundation blocks of broader trade negotiations.
While the renewed buying is viewed as a meaningful step, China still has significant targets to meet.
Washington has said Beijing is committed to purchasing 12 million tons of US soybeans before the end of this year.
This would then be followed by 25 million tons annually for the next three years.
China has not confirmed those figures, but recent moves show an effort toward alignment.
Along with the new shipments, Beijing has lowered tariffs on soybeans and lifted import bans on three US exporters, including CHS Inc.
These changes follow similar actions from Washington and indicate that both sides are continuing to show cooperation after last month’s truce.
Trade actions
President Donald Trump told reporters aboard Air Force One last week that additional purchases were likely and could begin even before spring.
His remarks underline how closely agricultural trade is tied to broader discussions between the two largest economies.
Even with this progress, traders note the importance of current global supply conditions. Stockpiles are considered plentiful, which means that new shipments will take time to meaningfully affect inventories.
Market participants are also watching how demand evolves over the coming months as the seasonal cycle plays out.
For now, the renewed activity provides farmers, exporters and commodity desks with clearer evidence that recent agreements are being followed through with concrete transactions.
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