SINGAPORE/BEIJING, Nov 3 – Chinese importers of soybeans have recently increased their purchases of Brazilian shipments as prices from South America have dropped. This change is linked to expectations that a trade deal between the U.S. and China will allow for a return of U.S. soybean sales to China, which is the world's largest importer of soybeans.
According to three traders, buyers have secured 10 shipments of Brazilian soybeans for December delivery and another 10 for the period from March to July. Current prices from South America are now lower than those quoted for U.S. shipments.
In recent weeks, Brazilian soybeans were priced higher than U.S. supplies due to high tariffs imposed by China, which limited demand for U.S. beans.
“Brazil is now cheaper than soybeans from the U.S. Gulf, and buyers are taking this chance to secure shipments,” said a trader from an international company that operates oilseed processing plants in China. “We've noticed a rise in demand for Brazilian soybeans since last week.”
CHINA TO BOOST FARM TRADE WITH U.S. UNDER NEW DEAL
China has committed to increasing agricultural trade with the U.S. following a meeting between U.S. President Donald Trump and Chinese President Xi Jinping in South Korea last week.
The White House detailed the agreement, stating that China plans to buy at least 12 million metric tons of U.S. soybeans in the last two months of 2025 and a minimum of 25 million tons each year for the next three years.
The market is now waiting for more information from Chinese officials about possible reductions in tariffs on U.S. agricultural goods.
“We have heard from the U.S. side, but there hasn't been much communication from China,” mentioned a second trader at a global trading firm. “We can't make trading decisions until we get confirmation that China has removed tariffs on U.S. soybeans.”
Last week, China's state-owned COFCO made its first purchases of this year's U.S. soybean harvest, buying three shipments.
December shipments of Brazilian soybeans are currently priced at a premium of $2.25-$2.30 over the January Chicago contract, while U.S. soybeans from the Gulf Coast are being offered at $2.40 per bushel, according to traders.
On Monday, Chicago soybean futures rose nearly 1%, reaching a 15-month high as China's renewed interest in the U.S. market continued to support prices.