China ramps up U.S. soybean purchases amid thawing trade ties

China has significantly increased its purchases of U.S. soybeans, with state-owned agribusiness giant Cofco booking at least six cargoes for September–October loading, according to sources familiar with the matter. The move follows a May summit between President Donald Trump and President Xi Jinping, which reignited agricultural trade momentum. The U.S. Department of Agriculture reported that Chinese buyers had already committed to purchasing 200,000 tons of American soybeans, while the White House stated Beijing agreed to buy at least $17 billion in U.S. agricultural products annually, including at least 25 million tons of soybeans through 2028. Beijing has not confirmed these figures. Soybean futures in Chicago surged to $11.98 per bushel—the highest intraday level in over a month—before paring gains, while prices jumped 3.9% on July 6, marking the largest single-day increase since June 2023. Earlier this year, China fulfilled a prior pledge to purchase 12 million tons of U.S. soybeans after delaying purchases for much of the season as leverage in tariff negotiations. Both nations are now discussing rolling back duties on certain agricultural products following recent talks, as they aim to uphold a broader trade truce established last year. President Trump indicated an expectation of another meeting with President Xi in September. Meanwhile, U.S. farmers’ sentiment has weakened for three consecutive months due to high costs, according to a June survey by Purdue University and the CME Group released on July 7.