Private Traders Sit Out, Testing China Pledge on Soybeans

China has accelerated its purchases of US soybeans ahead of a planned September summit between President Xi Jinping and President Donald Trump, with state-owned traders leading the buying. However, private Chinese importers remain largely sidelined due to tariffs and strained ties, making US soybeans uneconomic. The Xi-Trump talks will review progress on the trade truce, which includes China’s pledge to buy US agricultural products, including soybeans. While state-owned traders have completed the initial goal of buying 12 million tons of US beans, private participation is crucial to meet the 25 million-ton annual target. Private crushers are waiting and playing by ear, and soybean meal supplies could tighten up domestically in the fourth quarter if more US soybean supplies aren’t readily available. State-owned Chinese firms have booked another flurry of US soybean cargoes, bringing total purchases for the 2026-27 season to about 6 million tons, which is about a quarter of the 25 million tons the White House said China will buy annually through 2028.