China to purchase 12 mln tons of US soybeans this year

China has agreed to buy 12 million tons of U.S. soybeans in 2025, providing long-awaited relief for American farmers who have faced prolonged pressure amid weak exports. U.S. Treasury Secretary Scott Bessent announced that Beijing will also commit to purchasing at least 25 million tons annually over the next three years. The deal reopens a trade channel worth more than $12 billion last year, crucial for the U.S. agricultural sector.

Following Bessent’s comments, soybean futures in Chicago reversed earlier losses and rose 0.2% to $10.96 per bushel. President Donald Trump, who recently met with Chinese President Xi Jinping to finalize a broad trade accord, said that China would begin purchases “immediately.”

Farmers across the Midwest welcomed the announcement with cautious optimism. “It’s not a huge number, but at least it’s something,” said Marty Richardson, a Missouri farmer. Andrew Philips from Nebraska added that while profitability is still out of reach, the price rally brings “much better prospects than before.”

Analysts note that this year’s commitment remains below historical levels — the U.S. shipped about 27 million tons of soybeans to China last year, and more than 34 million tons after the Phase One agreement in 2020. Still, annual purchases of 25 million tons would represent a return to normal trade volumes between the two countries.

However, market experts caution that China’s soy demand may remain limited, given its large stockpiles from record imports from South America and slower economic growth reducing feed consumption. Beijing is also expected to maintain its long-term strategy to diversify suppliers and reduce dependence on the U.S.

Uncertainty persists over China’s import tariffs on U.S. agricultural goods, including soybeans. Analysts say tariffs would need to be “close to zero” for Chinese crushers to profitably process American soybeans without government subsidies.

For U.S. farmers — a key voting bloc for Trump — the agreement marks a potential turning point after years of weak prices, high costs, and overflowing grain bins. The resumption of Chinese purchases could help stabilize farm incomes and strengthen the U.S. soybean sector in the coming seasons.

Tags: China, soybean, USA