China ups US soybean purchases to 1 million tonnes

China has purchased nearly 1 million tonnes of US soybeans, according to media reports, the first since a meeting between President Donald Trump and President Xi Jinping in October.

State-owned agriculture trader COFCO Group booked nearly 20 cargoes of US soybeans on Nov. 17 for delivery in December and January, according to people familiar with the matter. The shipments were from Pacific northwest ports and Gulf coast terminals in the US.

COFCO booked at least 840,000 tonnes, according to Reuters, and during the government shutdown, the US Department of Agriculture data showed sales of 232,000 tonnes, bringing the total to nearly 1 million tonnes.

The US said China has pledged to buy 12 million tonnes of US soybeans by the end of this year and 25 million tonnes annually over the next three years.

China has not yet confirmed the purchase commitments, but it has moved to reduce tariffs on soybeans and lifted import bans on three US exporters.

This recent purchase was the most significant since January. China has mostly held off buying US soybeans this season. Last year, soybean trade between the two nations was worth more than $12 billion.

China has purchased more Brazilian soybeans and record volumes from Argentina, as part of its plan to diversify supply.

Tags: soybeans, US, shipments, China, COFCO