Trump Seeks to Sell 20 Million Tons of US Soybeans to China Ahead of April Visit
According to the Economic Desk of Webangah News Agency, traders and analysts suggest China may order state grain companies to purchase US soybeans to appease President Donald Trump ahead of his planned April visit, as Beijing seeks further concessions from Washington.
Evan Pe, an agricultural analyst at Beijing-based policy consultancy Trivium China, stated it would be illogical for China to buy more US soybeans during Brazil’s harvest season, though such a move could facilitate a constructive and profitable visit for Trump in April.
Chicago futures traded near two-month highs on Thursday amid expectations of Chinese demand. Trump revealed China’s potential purchase after what he described as highly positive Wednesday talks with Chinese President Xi Jinping.
Chinese state firms Sinograin and Cofco have bought approximately 12 million tons of US soybeans since October trade negotiations, paying nearly $100 million more than Brazilian soybean prices based on market rates.
Traders note rising US soybean prices have widened the cost gap with Brazilian shipments, forcing Chinese buyers to pay higher premiums. Reuters reported April-delivery US soybeans priced at $2.08 to $2.48 per bushel including China shipping costs, compared to $1.18 to $1.33 for Brazilian cargoes.
