China buys 1 million tons of US soybeans ahead of Xi visit, sources say

In late July, US President Donald Trump announced that Chinese President Xi Jinping would visit Washington on September 24. In response, China has purchased approximately 1 million metric tons of US soybeans this week, according to four traders speaking to Reuters. This surge in purchases marks China's total US soybean buying at nearly half of the 25 million tons Beijing has committed to annually through 2028.

While this buying can help strengthen trade and diplomatic ties with Washington, it also occurs amidst a tightening of global oilseed supplies, particularly in the top exporter, Brazil.

Traders note that Sinograin, a state-owned Chinese grain trading company, has been making these purchases ahead of Xi's visit to the U.S. However, Sinograin and COFCO, another state-owned company, have not yet commented on the matter. The USDA reported in a recent update that China bought 340,000 tons of US soybeans and 100,000 tons to unknown destinations. Despite a 10% additional tariff on all US goods, including agricultural products, China still seeks to reduce this barrier to trade.

Following a meeting between the two countries' leaders in May, Washington had hoped that China would commit to purchasing $17 billion worth of non-soy US agricultural goods annually through 2028, while maintaining its pledge to buy 25 million metric tons of US soybeans each year. However, the Chinese government has yet to confirm the visit date or the extent of any planned soybean purchases.