China Resumes US Soybean Purchase with 12M Ton Deal Amid Trade Talks

U.S. Treasury Secretary Scott Bessent announced that China will purchase 12 million metric tons of American soybeans during the current season through January and commit to buying 25 million tons annually for the next three years as part of a larger trade agreement following a meeting between President Donald Trump and Chinese President Xi Jinping. This agreement marks a partial recovery from the previous season's 22.5 million tons, which was impacted by a months-long tariff dispute that halted current U.S. harvest purchases. The deal aims to restore normalcy in trade with China, the top U.S. soybean importer, which averaged nearly 29 million tons over the past five crop seasons. Bessent also revealed that other Southeast Asian countries have agreed to buy an additional 19 million tons of U.S. soybeans, though specific details remain unclear. The announcement positively influenced soybean market prices, with contracts on the Chicago Board of Trade rising, reflecting optimism for U.S. farmers who had been adversely affected by prior trade tensions. However, some analysts caution that these purchase volumes, while significant, may not support an expansion of the U.S. soybean export program.