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The Sun
6 days ago
- Business
- The Sun
US soybean prices surge as Trump pushes China to boost orders
U.S. soybean prices soared to a two-week high on Monday after President Donald Trump urged China to quadruple its purchases ahead of a tariff truce deadline, though analysts questioned the feasibility of any such deal. China, the world's biggest soybean importer, has not yet pre-purchased soybeans from the upcoming U.S. harvest amid trade tensions with Washington, an unusual delay that has fuelled concerns among U.S. farmers and traders as the harvest export season approaches. 'Rapid service will be provided. Thank you President XI,' Trump said in a late-night Sunday social media post. A tariff truce between Beijing and Washington was set to expire on Tuesday, but Trump signed an executive order extending the tariff deadline by 90 days, a White House official said on Monday. The most active soybean contract on the Chicago Board of Trade jumped 2.4% to $10.11-1/4 a bushel. China imported roughly 105 million metric tons of soybeans last year, with just under a quarter coming from the U.S. and most of the remainder from Brazil. Quadrupling shipments would require China to import the bulk of its soybeans from the U.S. China imports the oilseed to crush it into soymeal for livestock feed. After record imports earlier this year, traders said a glut of soymeal in China would likely reduce Chinese demand for soybeans. 'It's highly unlikely that China would ever buy four times its usual volume of soybeans from the U.S.,' said Johnny Xiang, founder of Beijing-based AgRadar Consulting. It was unclear whether the U.S. secured any commitment by China to buy more U.S. soybeans as a condition for the truce extension, as Trump looks to reduce China's trade surplus with the U.S. China's soymeal futures fell 0.65% to 3,068 yuan per metric ton on expectations that U.S. imports could increase supply. The United States faces fierce competition for soybean sales to China from Brazil, the world's biggest exporter. U.S. sales would suffer if China keeps a tariff on American soy, said Gary Vetter, who raises crops and cattle in Westside, Iowa. 'They're going to go to their cheapest producer,' he said, referring to China. U.S. farmers largely backed Trump in his campaigns to become president and said they appreciated his social media post, even if it does not immediately increase export sales. 'He is trying to support the United States,' Vetter said. China's Ministry of Commerce did not immediately respond to a Reuters request for comment. SOYBEAN SHIFT During the first Trump administration, a trade war with China hurt U.S. soybean growers as China shifted purchases toward Brazil. In the years since, China has looked to ramp up crop imports from South America and is developing a port in Chancay, Peru. Under the Phase One trade deal that China signed to end the trade war, Beijing agreed to boost purchases of U.S. agricultural products, including soybeans. However, Beijing fell far short of meeting those targets. 'They certainly don't have the room to buy multiples of U.S. bean imports,' financial firm Marex said. China started importing U.S. soybeans in 1995, and the country typically begins booking post-harvest purchases much earlier in the year. This year is the longest that China has avoided booking soybeans from the autumn harvest since at least 2005, according to U.S. Department of Agriculture data and interviews with exporters. 'On Beijing's side, there have been quite a few signals that China is prepared to forego U.S. soybeans altogether this year,' said Even Rogers Pay, an agricultural analyst at Trivium China. Reuters previously reported that Chinese feedmakers have purchased three Argentine soymeal cargoes as they aim to secure cheaper South American supplies. The U.S. soybean industry has been seeking alternative buyers, but no country matches China's scale. Last year, China imported 22.13 million tons of soybeans from the U.S., and 74.65 million tons from Brazil, according to Chinese data. 'We're all working to diversify away from China, but China is critically important for us,' said Jim Sutter, CEO of the U.S. Soybean Export Council. 'So we've been encouraging the U.S. government to work with China to try and get another agreement in place.' - Reuters
The Sun
7 days ago
- Business
- The Sun
Trump pushes China to quadruple US soybean purchases ahead of trade deadline
CHICAGO: US President Donald Trump called on China to quadruple its soybean purchases from the US in a late-night social media post. His statement sent Chicago soybean prices up by 2.38% to $10.11 a bushel in early trading on Monday. China, the world's top soybean importer, bought about 105 million metric tons last year, with only a quarter sourced from the US. Analysts quickly dismissed the feasibility of China increasing US soybean imports fourfold. 'It's highly unlikely that China would ever buy four times its usual volume of soybeans from the US,' said Johnny Xiang of AgRadar Consulting. The current tariff truce between the US and China is set to expire on August 12, with possible extensions under discussion. Trump's push for higher soybean sales comes as Washington seeks to reduce China's trade surplus with the US. China's soymeal futures dipped 0.65% amid expectations of increased US soybean supply. Beijing has not yet responded to Trump's latest demand. Under the Phase One trade deal, China pledged to buy more US farm goods but fell short of its targets. This year, China has not purchased any fourth-quarter US soybeans, raising concerns ahead of the US harvest season. 'China is prepared to forego US soybeans this year, including test cargoes from Argentina,' said analyst Even Rogers Pay. Chinese feedmakers have already secured Argentine soymeal shipments as a hedge against potential supply disruptions. The US soybean industry is searching for new buyers, but none match China's massive import capacity. Last year, China imported 22.13 million tons of US soybeans compared to 74.65 million tons from Brazil. - Reuters
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First Post
11-08-2025
- Business
- First Post
Trump wants to sell more soybeans to China as Beijing builds chip pressure in trade deal talks
Trump has expressed hope that China will quadruple its soybean purchases from the US, saying this would help reduce Beijing's trade deficit with Washington. However, experts say such a sharp increase in US soybean exports to China is unlikely. read more US President Donald Trump said on Sunday that he hoped China would quadruple its soybean orders from the US, emphasising that this would also be 'a way of substantially reducing' Beijing's trade deficit with Washington. 'China is worried about its shortage of soybeans. Our great farmers produce the most robust soybeans. I hope China will quickly quadruple its soybean orders. This is also a way of substantially reducing China's trade deficit with the US. Rapid service will be provided. Thank you President Xi,' Trump said on Truth Social. STORY CONTINUES BELOW THIS AD A tariff truce between Beijing and Washington is due to expire on 12 August, but the Trump administration has suggested the deadline could be extended. China, which accounts for more than 60 per cent of global soybean imports, mainly buys the crop from Brazil and the US. The most active soybean contract on the Chicago Board of Trade (CBOT) was up 2.13 per cent at $10.08 a bushel at 0446 GMT, after being largely unchanged before Trump's statement. Last year, China imported roughly 105 million metric tons of soybeans, with just under a quarter coming from the US and most of the rest from Brazil. Quadrupling shipments would require China to source the majority of its soybeans from the US. 'It's highly unlikely that China would ever buy four times its usual volume of soybeans from the US,' said Johnny Xiang, founder of Beijing-based AgRadar Consulting. In recent years, China has steadily reduced its reliance on US soybeans, shifting more of its purchases to South American counteries. Under the Phase One trade deal signed during Trump's first term, China agreed to boost purchases of US agricultural products, including soybeans. However, Beijing ultimately fell far short of meeting those targets. STORY CONTINUES BELOW THIS AD This year, amid continuing trade tensions between Washington and Beijing, China has yet to purchase any US soybeans for the fourth quarter, raising concerns as the US harvest and export season approaches. The US soybean industry has been looking for alternative buyers, but no other country matches China's scale. Last year, China imported 22.13 million tons of soybeans from the US, and 74.65 million tons from Brazil.
