On July 7, Bloomberg cited sources familiar with the matter, stating that China has recently increased its purchases of US soybeans, indicating a gradual recovery in agricultural trade between the two countries.
Sources familiar with the matter revealed that COFCO Group Corporation has ordered at least 6 ships of American soybeans, with the shipment scheduled to be loaded between September and October this year.
Encouraged by procurement news, the soybean futures price at the Chicago Board of Trade rose by 3.9% on the 6th, marking the largest one-day increase since June 2023. The price remained relatively unchanged during the Asian trading session.
After US President Trump returned to the White House last year and imposed a trade war, China temporarily stopped importing American soybeans. Reports indicate that as the two sides reached a one-year trade truce agreement in October last year, China resumed purchases, fulfilling its commitment to purchase 12 million tons of American soybeans. The US Department of Agriculture stated last month that Chinese buyers had promised to purchase 200,000 tons of American soybeans.
According to the White House, after Trump's visit to China, the Chinese side agreed to purchase at least $17 billion in American agricultural products, and promised to purchase at least 25 million tons of American soybeans annually by 2028. However, the Chinese side did not confirm these figures.
On the afternoon of July 2, the Chinese Ministry of Commerce held a regular press conference. Press spokesman He Yadong stated that agricultural product trade is an important part of Sino-US economic and trade cooperation. After recent economic and trade consultations, both sides have set guiding targets for expanding bilateral agricultural trade, and have agreed in principle to include relevant agricultural products in the framework arrangement for reciprocal tax reductions. Enterprises will follow market-oriented principles and conduct trade based on actual needs and market conditions.
He Yadong said that China is willing to work towards common goals with the US, in order to create favorable conditions for two-way agricultural trade.
