SINGAPORE/BEIJING, Nov 6 – According to traders on Thursday, China has made two purchases of U.S. wheat after a meeting between the leaders of the two countries last week. This marks the first such purchases since October of last year, indicating some relief in trade tensions between Washington and Beijing.
Investors reacted positively to the encounter between U.S. President Donald Trump and Chinese leader Xi Jinping in South Korea, which has alleviated worries regarding the ongoing trade dispute affecting the exchange of goods, including vital agricultural products.
On Wednesday, Beijing announced that starting November 10, it would eliminate tariffs on certain U.S. agricultural products that were imposed earlier on March 4. This includes removing a 15% duty on U.S. wheat.
The purchases consist of roughly 120,000 metric tons scheduled for December shipment, comprising one load of U.S. soft white wheat and another of spring wheat. Sources confirmed this information.
One grain trader based in Singapore, who is familiar with these transactions, mentioned, “This shows China's commitment to purchasing U.S. grains, as U.S. wheat isn't the cheapest option available. It seems more like a political gesture to buy these shipments.”
As the largest market for U.S. farmers, China's strong demand for American crops has become an essential tool in the trade war.
Following several rounds of retaliatory tariffs, Chinese buyers have mainly steered clear of U.S. agricultural goods, such as wheat and soybeans, opting instead for alternative suppliers.
In 2024, China imported 1.9 million tons of U.S. wheat, which accounted for 17% of its total wheat imports.
However, this year, China has decreased its overall wheat imports due to substantial local harvests. Imports from January to September plummeted by 72% compared to the same period last year.
In another encouraging development for trade, a shipment of sorghum has been sent from the U.S. to China since the meeting between Trump and Xi, as reported by Mark Wilson, chairman of the U.S. Grains and BioProducts Council.
In 2024, the U.S. exported 5.7 million tons of sorghum to China, representing 66% of China's total sorghum imports.