September 9, 2020

China purchases 664,000 tonnes of US soybeans, biggest since July

The United States Agriculture Department (USDA) said Chinese purchasers booked 664,000 tonnes of soybeans, the biggest daily total since July 22 this year to be delivered in the 2020 / 2021 marketing year, Reuters reported.

This comes as China ramps up its US agriculture goods purchases as part of its pledge in the US – China Phase 1 trade agreement signed earlier this year.

China pledged to purchase US$36.5 billion in annual US agriculture purchases but has currently only reached US$7.274 billion by June 2020 according to US Census Bureau data.

USDA also said private exporters reported 101,600 tonnes of corn will be delivered to China for the 2020 / 2021 season.

China has boosted its US corn purchases as it faces a corn shortage and steep prices domestically.

After massive soybean purchases from Brazil earlier this year, China has shifted to buying more US soybeans and other US agricultural goods. China has purchased record numbers of corn, pork and poultry from the US this year and booked its biggest US beef purchase in August.

China usually buys more US soybeans in the fourth quarter of the year to coincide with US crop harvests and lower supplies from Brazil.

-      Reuters