China on track with US soybean purchases but lags on corn and sorghum

China is on track to meet its commitment to purchase 25 mln tons of US soybeans annually, according to analysts and traders. USDA data showed nearly 10 mln tons of new-crop US soybean sales to China as of September 10, while part of the sales to undisclosed destinations may also be destined for Chinese buyers.

Purchases of other US agricultural commodities are lagging. China has yet to buy any US corn for the current season, while imports of US sorghum have increased less than market participants had expected.

China has recently been buying large volumes of corn and sorghum from Brazil, increasing competition for US suppliers. At the same time, disruptions to Black Sea logistics and lower Ukrainian corn shipments could create additional opportunities for US exporters.

In soybeans, state-owned COFCO and Sinograin remain the main buyers of US supplies. Private Chinese crushers have largely stayed on the sidelines because of an additional 10% duty, which makes US soybeans less competitive than South American supplies.

US farm groups are urging the removal of the duty and stronger long-term Chinese purchase commitments. Meanwhile, progress toward the broader pledge to import $17 bln of US grains, meat and other agricultural products annually remains less certain.

Tags: corn, soybean, USA, sorghum, China