Beijing: China has significantly increased its buying of U.S. soybeans, securing at least 10 major cargoes in fresh deals this week, in what industry insiders view as a direct outcome of renewed diplomatic engagement between Washington and Beijing. The purchases, finalized between Tuesday and Wednesday, mark one of China’s largest short-term buying bursts in recent months and signal a notable shift in trade momentum.
According to trade sources familiar with the transactions, the new deals collectively represent several hundred thousand tonnes of soybeans, with individual shipments scheduled to depart from U.S. Gulf and Pacific Northwest ports in January. Some traders estimate that the total number of cargoes purchased could be as high as 15, underscoring the urgency and scale of China’s latest procurement round.
The timing of the deals immediately following a phone call between U.S. President Donald J. Trump and Chinese President Xi Jinping has fueled speculation that Beijing is moving to honor broader agricultural purchase commitments tied to ongoing bilateral discussions. Despite U.S. soybeans being priced significantly higher than their Brazilian counterparts, China pushed ahead with the purchases, paying a premium of roughly $2.20 to $2.35 per bushel above futures benchmarks. By comparison, Brazilian beans were available at about $1.80 per bushel, making the decision economically striking.
Most of the buying is believed to have been led by the state-owned trading powerhouse COFCO, which has already booked close to 2 million tonnes of American soybeans since late October. However, the new acquisitions remain only a step toward the substantial targets outlined earlier by U.S. officials, which include China’s plan to purchase 12 million tonnes of American soybeans this year alone. Broader agreements discussed between both nations encompass a far more ambitious commitment of 87.5 million tonnes over the next three and a half years.
U.S. Treasury Secretary Scott Bessent expressed confidence that China’s progress is “right on schedule,” pointing to the latest deals as evidence of steady movement toward fulfilling those long-term pledges. For American farmers, the sudden surge in demand provided an immediate lift: after months of lukewarm market activity, the purchases helped elevate prices and encouraged producers many dealing with financial stress to resume sales.
The global impact of China’s buying spree has been swift. With Beijing opting for higher-priced U.S. supplies, other major importers, particularly in Asia and the Middle East, now face a tighter market and a widened price gap between U.S. and Brazilian origins. Analysts caution that unless price differentials narrow, U.S. exporters may struggle to maintain competitiveness beyond China’s politically driven buying.
Still, the scale and timing of the purchases underscore a larger strategic objective: China is not only seeking to stabilize diplomatic ties with the U.S., but is also prioritizing secure and reliable access to agricultural commodities amid fluctuating global market conditions.