China appears to have begun following through on planned purchases of U.S. soybeans. Reuters reports Chinese state-owned companies purchased at least 500,000 metric tons of U.S. soybeans, the equivalent of roughly 18 million bushels. Other reports suggest China has purchased as much as two million metric tons.
The purchases follow an announcement after talks between the U.S. and China at the G20 Summit that China will resume buying U.S. ag products. Traders told Reuters the soybeans are expected to be shipped from grain terminals in the U.S. Pacific Northwest, the most direct route to Asia.
Historically, China is the largest buyer of U.S. soybeans, importing about 60 percent of all U.S. soybean exports last year, valued at more than $12 billion. Those purchases stopped this year, however, as China implemented a 25 percent tariff on U.S. soybeans as part of the U.S.-China trade war.