China has bought more than half of its promised US soybeans

China has secured at least 7 million tonnes of U.S. soybeans after a surge in buying over the past two weeks, moving past the halfway mark toward fulfilling its commitment to purchase 12 million tonnes of American soybeans. The information comes from sources familiar with the deals, as reported by Bloomberg.

A key role in the recent buying spree has been played by state-owned Sinograin, the company responsible for managing China’s strategic grain reserves. According to the sources, Sinograin booked about 2 million tonnes of U.S. soybeans last week and continued purchasing this week, securing at least seven cargoes totaling more than 400,000 tonnes.

Sinograin’s return to the market adds to earlier deals concluded by another state-owned trader, Cofco, and could significantly accelerate the pace of China’s imports. The purchases are also taking place as China auctions large volumes of soybeans from state reserves to free up storage capacity for incoming U.S. shipments.

Grain markets and U.S. farmers are closely monitoring the situation amid limited transparency surrounding the agreement reached after a meeting between former U.S. President Donald Trump and Chinese President Xi Jinping in late October. China has yet to officially confirm the details of the deal, which called for purchases of at least 12 million tonnes of U.S. soybeans.

Confusion has also been fueled by differing deadlines cited by U.S. officials. While Washington initially indicated the target would be met by the end of the year, later comments suggested purchases could be completed by the end of February, when China’s seasonal imports from Brazil typically begin to increase.

Official data provides only a partial picture of the buying pace. The U.S. Department of Agriculture has reported less than 5 million tonnes of soybean sales to China, though traders believe the true volume is higher. Nearly 3 million tonnes have been sold to “unknown destinations,” shipments that could ultimately be redirected to China at the time of export.

Despite expectations that the 12-million-tonne target will eventually be met, soybean prices remain under pressure. Uncertainty over shipment timing, expectations of a record Brazilian harvest, and strong competition from cheaper South American supplies have pushed Chicago soybean futures down nearly 9% from their November peak, adding to financial strain on U.S. farmers.

Tags: China, soybean, USA, duties