{"id":44760,"date":"2025-10-29T11:35:30","date_gmt":"2025-10-29T11:35:30","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/10\/29\/trade-hopes-boost-soybean-prices-as-china-makes-first-us-purchases-in-months\/"},"modified":"2025-10-29T11:35:30","modified_gmt":"2025-10-29T11:35:30","slug":"trade-hopes-boost-soybean-prices-as-china-makes-first-us-purchases-in-months","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/10\/29\/trade-hopes-boost-soybean-prices-as-china-makes-first-us-purchases-in-months\/","title":{"rendered":"Trade hopes boost soybean prices as China makes first US purchases in months"},"content":{"rendered":"
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Shortly before a summit between leaders Donald Trump and Xi Jinping, China’s state-owned COFCO purchased three US soybean cargoes. <\/p>\n

These were the first purchases by China from this year’s US harvest, according to a Reuters report<\/a>.<\/p>\n

US farmers, who largely supported Trump’s presidential campaigns, have lost billions in sales due to the lack of Chinese purchases amid the ongoing trade tariff dispute between the two nations.<\/p>\n

Despite COFCO’s recent purchase of approximately 180,000 metric tons of soybeans for December-January shipment\u2014China’s first such acquisition in months\u2014traders anticipate no substantial resurgence in demand for US cargoes, given recent large South American purchases.<\/p>\n

“COFCO has proceeded to purchase US beans even before the two leaders have reached a trade agreement,” a trader at an international trading company that supplies Chinese crushers was quoted in the Reuters report.<\/p>\n

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The volumes booked by COFCO are not that large, three cargoes for now.<\/p>\n<\/blockquote>\n

Soybean prices surge<\/h2>\n

Chicago soybean futures reached a 15-month high this week, recovering from recent five-year lows. <\/p>\n

This surge is attributed to optimism surrounding a potential US-China trade agreement.<\/p>\n

Soybean prices had reached a 15-and-a-half-month high, nearing 1,100 US cents per bushel, driven by optimism surrounding a potential trade agreement between the US and China.<\/p>\n

Soybean imports from the US by China ceased in September for the first time in seven years, coinciding with a sharp decline in overall purchases in recent months. <\/p>\n

According to customs data, total imports for September reached 12.9 million tons, marking the second-highest monthly level ever.<\/p>\n

The US Department of Agriculture has paused the publication of crop progress and export data due to the current government shutdown.<\/p>\n

Carsten Fritsch, commodity analyst at Commerzbank said:<\/p>\n

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As a result, there is a lack of information on soybean supply and demand in the US.<\/p>\n<\/blockquote>\n

Poor demand<\/h2>\n

China has almost finalised its soybean import bookings from Brazil and Argentina for November, accounting for over 60% of global soybean imports. <\/p>\n

Limited purchases are anticipated for December and January, prior to the Brazilian harvest.<\/p>\n

US suppliers have largely missed out on the oilseed crushing business. One oilseed trader anticipates China will require approximately 5 million tons of shipments in December and January, with market conditions favouring Brazil.<\/p>\n

This week, US soybean prices have risen to match Brazilian cargoes, trading at approximately $2.45 per bushel above Chicago futures. <\/p>\n

This marks a shift from recent weeks when US soybeans were significantly cheaper due to weak Chinese demand, according to traders.<\/p>\n

Private Chinese buyers often favour Brazilian soybeans due to their superior protein content, which typically commands a premium over US soybeans. <\/p>\n

This preference was noted by Jeffrey Xu, general manager of Shanghai-based OCI, a soybean consultant, and two other traders.<\/p>\n

However, between December and May, China is projected to purchase approximately 8 million tons of US soybeans for its strategic reserves. <\/p>\n

This acquisition, estimated at around $4 billion, would be facilitated through state-owned enterprises like Sinograin, according to the report.<\/p>\n

The post Trade hopes boost soybean prices as China makes first US purchases in months<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Shortly before a summit between leaders Donald Trump and Xi Jinping, China’s state-owned COFCO purchased three US soybean cargoes.  These were the first purchases by China from this year’s US harvest, according to a Reuters report. US farmers, who largely supported Trump’s presidential campaigns, have lost billions in sales due to the lack of Chinese <\/p>\n","protected":false},"author":1,"featured_media":44761,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-44760","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/44760","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=44760"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/44760\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/44761"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=44760"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=44760"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=44760"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}