China holds back soybean purchases ahead of Xi-Trump summit

Chinese buyers have temporarily halted soybean purchases as global markets await a potential meeting between U.S. President Donald Trump and Chinese President Xi Jinping, which could revive trade between the two nations. Short-term shipments have slowed due to rising costs and deepening losses at Chinese crushers, according to sources familiar with the situation.

At current prices, Chinese processors face losses of around 180 yuan ($25.3) per ton of soybeans for December delivery. Shipments from Brazil between November and January are also unprofitable, discouraging purchases. Progress in U.S.-China trade talks could restore access to American soybeans, increase competition, and help lower prices.

Rising soybean meal prices in Chicago have lifted domestic soymeal prices in China, improving processing margins. The most actively traded soybean meal futures on the Dalian Commodity Exchange rose as much as 1.7%, supporting expectations of renewed processing activity.

This season, Beijing has avoided U.S. soybeans, instead purchasing record volumes from South America to meet most of its 2025 demand and part of 2026 requirements. December–January purchases have been minimal, as shipments are mainly expected in the first two months of the next year.

Chinese crushers have already secured some February shipments from Brazil, leaving a limited window for U.S. imports. Brazilian soybean prices have risen 20% this year due to high Chinese demand, but any trade deal with the U.S. could lower South American prices and prompt Chinese processors to reassess their buying plans.

Tags: China, Brazil, prices, soybean, USA