Corn and soybeans rise on Chinese purchases as markets await fresh data

Soybean futures rebounded on Thursday after additional export sales were confirmed, with China purchasing another 10 million bushels and undisclosed destinations accounting for 8 million bushels.

Randy Martinson of Martinson Ag said the developments confirmed reports that China had purchased 1 million metric tons, or 15 cargoes, of US soybeans this week as it steps up buying ahead of the US-China summit.

“That is certainly helping push the soybean market higher. I think there is a lot of excitement starting to build around the meeting between Xi Jinping and Donald Trump scheduled for September 24. So I think that is adding some momentum to the market,” Martinson said.

He added that traders are also expecting further announcements of purchases of other agricultural products.

China’s total purchases

Martinson said China has so far purchased around 13 million metric tons of the 25 million metric tons of US soybeans it committed to buy, noting that the figure is even larger when purchases by undisclosed destinations are included.

“So they are well on their way toward buying the 25 million metric tons they need to purchase by December 31,” he said.

China buys 1 million tons of US soybeans ahead of Xi visit

China purchased around 1 million metric tons of US soybeans this week, according to four traders who spoke to Reuters, as the world’s largest oilseed importer steps up purchases ahead of Chinese President Xi Jinping’s visit to Washington later this month.

The purchases bring China’s total buying of US soybeans to nearly half of the 25 million metric tons that the White House said Beijing had pledged to purchase annually through 2028.

While China’s purchases of US soybeans could help strengthen trade and diplomatic ties with Washington, the buying also comes as global oilseed supplies tighten, with inventories declining in Brazil, the world’s largest exporter.

“Sinograin has made more purchases over the past few days. They have been buying ahead of Xi’s visit to the United States,” said one Asia-based trader.

Sinograin and COFCO, China’s state-owned buyers, did not immediately respond to Reuters requests for comment.

The US Department of Agriculture on Wednesday reported sales of 340,000 metric tons of US soybeans to China, along with another 100,000 metric tons to undisclosed destinations.

China still imposes an additional 10% tariff on all US goods, including agricultural products, following last year’s tit-for-tat tariff war between the two countries.

A reduction in soybean tariffs could bring Chinese private crushers back to the US market after the duties largely pushed them away from American supplies.

Following a meeting between the two countries’ leaders in May, Washington said China had agreed to purchase $17 billion worth of US agricultural products other than soybeans annually through 2028, while maintaining its commitment to buy 25 million metric tons of US soybeans each year over the same period.

In late July, US President Donald Trump said Xi would visit Washington on September 24. China has not confirmed the date of the visit or the size of any planned purchases of US soybeans or other agricultural products.