China has signed agreements to buy around seven million tons of US soybeans, more than half of the quota that Beijing has committed to acquiring by the beginning of 2026, a Hong Kong newspaper reported this Friday, 19th.
The quota is part of the agreement established between Beijing and Washington to end the trade war between the world’s two largest economies.
North American authorities reported the sale of around four tons of soybeans to the Asian country, with another three attributed to “unknown destinations”, which “has always been considered synonymous with China”, according to specialized consultancy Walsh Trading, cited by the South China Morning Post newspaper.
This would mean that Beijing is on track to fulfill its commitment to purchase 12 million tonnes – mainly through state grain reserves manager Sinograin –, although the information clarifies that shipments have not yet been made, raising fears of possible cancellations in the future.
“Our trade agreements, which have always been this way, allow China to reserve sales for future shipments. But if Brazil or Argentina have a big harvest, they can cancel them at any time,” explained Walsh Trading vice president Sean Lusk.
Only a few cargoes have left for China so far, according to the expert, who recommends paying attention between February and March to South American harvests, from which record numbers are expected that could reduce prices and, consequently, Beijing’s incentives to buy from the US.
In any case, these recent operations represent a turnaround in relation to the situation experienced for months: following the tariff escalation initiated by the North American President, Donald Trump, China reduced its soybean purchases from the USA to practically zero for almost half a year, which resulted in a drop in prices and difficulties for producers.
Following the agreements signed at the end of October between Trump and his Chinese counterpart, Xi Jinping, US Treasury Secretary Scott Bessent announced the aforementioned 12 million tonnes in purchases by February, adding that China committed to increasing purchases to at least 25 million annually by 2028.
However, this aggressive restart of purchases also meant that Sinograin held urgent auctions to make room for new imports, as storage capacity in the Asian country is practically at its limit.
Beijing had been preparing for some time to resist without North American soybeans, increasing imports from South America – for example, from Argentina, Brazil or Uruguay –, boosting local production or even reducing its use in livestock feed.