China sells record soybean batch ahead of incoming US shipments

China’s state grain reserve company Sinograin fully sold all 1.1 million metric tons of soybeans offered at its fourth auction since December. The sale took place on Tuesday, according to Reuters traders. The disposal is aimed at reducing stockpiles in anticipation of large incoming soybean shipments from the United States.

The soybeans, imported from the 2022–2025 crops, were sold at an average price of 3,811 yuan ($546.29) per ton. Deliveries of the U.S. soybeans are scheduled mainly for March and April. According to one Beijing-based oilseed trader, some crushing plants are facing shortages for those months and are therefore actively buying from government auctions, even though the overall market remains well-supplied with soybeans.

Sinograin conducted three auctions in December — its first sales in three months — following a trade agreement with Washington that spurred increased purchases of American soybeans. Across those auctions, approximately 900,000 tons were sold out of roughly 1.5 million tons offered, but average prices and clearance rates declined with each round due to relatively weak demand.

China is aggressively buying soybeans from the current U.S. crop: trader estimates put volumes between 8.5 and nearly 10 million tons, accounting for up to 80% of the 12 million tons that Beijing committed to purchase by the end of February, according to U.S. Treasury Secretary Scott Bessent. Recent purchases by Sinograin have brought China closer to meeting that pledge. U.S. soybean shipments to China have accelerated after months of delays caused by the trade war.

Official data on China’s grain and oilseed inventories are not published, but traders estimate Sinograin’s soybean stocks at 40–45 million tons — sufficient to cover roughly five months of consumption. The auctions help free up space for new import arrivals, despite an overall surplus on the domestic market driven by record harvests in South America and subdued demand.

Tags: China, soybean, USA