Home / Business and Economy / China May Buy 20 Million Tons More US Soybeans
China May Buy 20 Million Tons More US Soybeans
5 Feb
Summary
- China is considering purchasing an additional 20 million tons of U.S. soybeans.
- This potential deal could significantly aid struggling American farmers.
- Soybean futures surged to a near two-month high following the news.
Soybean futures experienced a significant rise after President Trump revealed that China is contemplating an increased purchase of U.S. agricultural exports. Specifically, discussions involved elevating soybean imports to 20 million tons for the current marketing year.
This potential boost in demand comes as a welcome development for American farmers, who endured a challenging year marked by low commodity prices and unprofitable acreage. Previously, in October, China had committed to purchasing 12 million metric tons of U.S. soybeans through the 2025-2026 marketing year.
Most-active soybean futures on the Chicago Board of Trade climbed 2.4%, reaching approximately $10.92 per bushel. This marks the highest price point observed in nearly two months, reflecting renewed market optimism.
However, the timing of this potential increase remains uncertain, especially as China approaches its week-long spring festival starting February 15. Some traders believe China's immediate interest may continue to lie with Brazilian soybeans, which are projected to have a record-breaking harvest this year. This bumper crop from Brazil is expected to keep prices competitive, potentially influencing U.S. soybean values.
