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China is accelerating purchases of US soybeans to stay on track with its commitment to buy at least 12 million tonnes from Washington, even as American beans trade at a clear premium to Brazilian supplies.
Beijing has already finalised purchases of nearly 10 million tonnes of US soybeans. In recent days, it committed to buying at least 10 cargoes, potentially amounting to around 600,000 tonnes, with market talk suggesting another five cargoes may also have been contracted. This leaves China with a narrow window until February to complete the remaining volumes under the deal.
Chinese buyers are paying a notable premium for US soybeans. For Gulf Coast shipments, prices are around $2.2–$2.3 per bushel above January Chicago Board of Trade futures, while Pacific Northwest cargoes are priced at about $2.2 over futures. In comparison, Brazilian soybeans are available at roughly $1.8 above the same contract, making US beans significantly more expensive.
Despite the higher prices and concerns over tighter crushing margins, Chinese para-statal agencies such as COFCO are pushing ahead with purchases. The buying spree is being seen as a strong signal of China’s intent to honour its trade commitments, even as it balances commercial considerations.
The renewed demand has supported global soybean prices, which have risen by over 0.5 per cent in the past week to around $10.60 a bushel. Strong export demand and supportive technical indicators are helping keep prices firm.
Chinese buying is also providing a boost to the global shipping market, with increased vessel movement expected between US ports and China as deliveries pick up pace in the coming weeks.