China resumes US soybean imports after trade truce

China's state-owned company COFCO has purchased up to 20 cargoes of US soybeans on Nov. 17 for December and January delivery from both US Gulf Coast and Pacific Northwest ports, according to multiple Chinese trade sources.

"Approximately half of the cargoes were bought from the US PNW, and the remainder from the US Gulf Coast," said two of the Chinese soybean traders.

COFCO has continued to remain active, seeking additional US soybean cargoes for December to January shipment on Nov. 18, Chinese trade sources told Platts, part of S&P Global Energy, on Nov. 19.

"There were about 3-4 cargoes traded," a Xiamen-based grain trader said, with another Chinese soybean trader noting that there could be up to six cargoes.

COFCO did not immediately respond to Platts' requests for comment.

This purchase marks China's largest return to the US soybean market since January.

China avoided purchasing US soybeans from June through late October in response to US tariffs, relying instead on South American supplies.

China withdrew additional tariffs on US-origin soybeans, effective Nov. 10, after the summit between US President Donald Trump and Chinese President Xi Jinping on Oct. 30 in Busan, South Korea.

According to data released by the US Department of Agriculture on Nov. 14 and updated Nov. 18, China booked only two US soybean purchases since the Trump-Xi summit, with 100,000 mt reported on Oct. 30 and 132,000 mt on Nov. 3.

US Census Bureau trade data showed total US soybean exports to China have fallen to 6.16 million mt as of Nov. 17, down 77% year over year from 26.81 million mt in 2024.

The US has said China agreed to import 12 million mt of US soybeans before year-end and at least 25 million mt annually from 2026 to 2028, according to a White House fact sheet issued Nov. 1.

Although China has not formally confirmed these commitments, the latest surge in buying aligns with US expectations and has revived optimism about restoring trade flows.

Analysts at S&P Global Energy caution that the window for US soybean sales to China continues to narrow as Brazil approaches a record new crop.

US-origin soybeans are generally preferred for reserves due to their lower moisture content and longer shelf life, a Singapore-based grains trader said.

"The trade levels for the US Gulf soybeans for the December shipment period were heard around 235-240 cents/bu over January (F) CBOT, basis CFR China," a Chinese soybean broker said.

Another Chinese soybean trader also added that the trade levels for US PNW for the January shipment period were heard around 220 cents/bu over January (F) CBOT.

Chicago Board of Trade January (F) futures rose 32.75 cents day over day to 1,157.25 cents/bu on Nov. 17, while the March (H) futures rose 27.25 cents to 1,163.25 cents/bu.

Platts, part of Energy, assessed CFR China first-month soybeans at $488.14/mt on Nov. 18, up $5.33/mt day over day.