China buys a large batch of US soybeans at prices significantly higher than Brazil’s

China has sharply increased its purchases of US soybeans, securing at least 14 vessels — the largest volume since early 2025 and the most significant since the October summit between Xi Jinping and Donald Trump. This surge in demand pushed soybean futures in Chicago nearly 3% higher, reaching a 17-month peak.

According to traders, Beijing is resuming large-scale purchases from the United States to fulfil commitments made at the Busan trade summit. Despite US soybeans being far more expensive than competing Brazilian supplies, China is demonstrating political loyalty to the agreement. “This is no longer a goodwill gesture but a fulfilment of the Busan terms,” a Singapore-based trader said.

State-owned grain trader Cofco has bought at least 840,000 tonnes for December and January delivery. Traders estimate that roughly three-quarters of the shipments will depart from US Gulf Coast terminals, with the remainder scheduled from Pacific Northwest ports. The total may grow further if additional deals are finalised.

China remains vital to the US soybean market: last year, the US shipped nearly 27 million tonnes to Chinese buyers. Yet progress toward Beijing’s pledge to purchase 12 million tonnes of US soybeans in 2025 had been minimal until this week. Cofco is now paying premiums of US$2.15–US$2.40 per bushel above the January futures contract — nearly double the premium for new-crop Brazilian soybeans.

Chinese processing companies acknowledge that the purchases are driven primarily by political motives, not market economics, as domestic buyers are forced to pay substantially more than Brazilian alternatives. Still, the deals were welcomed in the United States. US Soybean Export Council CEO Jim Sutter said the renewed activity signals progress in restoring traditional trade flows and brings hope to American farmers.

Earlier this season, China largely avoided US soybeans due to the escalating trade war, turning instead to Brazil and Argentina. This shift pushed US prices to multi-year lows over the summer and worsened financial pressure on farmers already facing rising fuel, fertilizer, and seed costs. The latest Chinese buying wave has revived optimism, triggering a sharp rally in Chicago futures.

Tags: China, prices, soybean, USA