US President Donald Trump suggested that China quadruple its soybean purchases. This call boosted soybean prices in Chicago, but analysts questioned the practical likelihood of the deal happening.
Trump, in a post on Truth Social, noted that China was experiencing a soybean shortage and said he expected them to quickly quadruple their purchases from the US: “Fast service will be provided. Thank you, President Xi.”
Following Trump’s announcement, the most actively traded soybean contract on the Chicago Mercantile Exchange rose 2.38% to $10.11. China, the world’s largest buyer of soybeans, imported approximately 105 million tons of soybeans last year; a quarter of that came from the US and the rest from Brazil. The proposal to quadruple production would require China to import most of it from the U.S. Analysts say it is highly unlikely that China will accept such an agreement. The tariff truce between Beijing and Washington expires on August 12, but the Trump administration has hinted that this date could be extended. Whether China agreeing to buy more soybeans from the U.S. would be a condition for extending the truce remains unclear. China imported 22.13 million tons of soybeans from the U.S. last year and 74.65 million tons from Brazil. However, China has not yet started purchasing soybeans from the US this year and aims to replace soybeans imported from Brazil.
