China Buys Soybeans Ahead of Trade Talks

Privately run Chinese firms bought at least ten boatloads of U.S. soybeans late last week. Reuters says that was the most significant Chinese purchase since June. The move comes ahead of high-level talks next month which both sides hope will end a trade war that’s gone on for over a year. The purchases totaled more than 600,000 tons and will be shipped out from export terminals in the Northwest U.S. between October and December. Reuters says the purchases are hopefully another indication that trade tensions between the two countries are easing. Talks hit another low point last month when China suspended all U.S. farm product purchases in response to threats by President Trump to impose more tariffs on Chinese imports.

Jack Scoville, Vice President of Price Futures Group in Chicago says, “I’m impressed that the day they allow their commercial interests to buy from the United States, we’ve got this much sold immediately. Clearly, they’re trying to show what they can do if we get back to a normal trade relationship.” Also, late last week, the USDA reported China buying 10,878 tons of U.S. pork in the week ending September 5, the most in a single week since May.

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