[AP]
[AP]

China purchased the largest single-day volume of US soybeans since November last year, as agricultural trade accelerates in the wake of US-China trade negotiations.

According to Bloomberg, the US Department of Agriculture said Wednesday that exporters had sold 472,000 metric tons of American soybeans to China. That is the largest single-day export contract volume for China since November last year.

The USDA said the contracted volume is scheduled for delivery across the current and next marketing years.

Bloomberg, citing sources familiar with the matter, reported that COFCO, China's state-owned grain company, purchased at least five additional shiploads of US soybeans on Wednesday. The company had already secured at least six shiploads earlier this week, continuing a streak of US soybean purchases.

US soybeans are among China's most significant agricultural imports and are widely regarded as a key barometer of the bilateral trade relationship.

The surge in soybean purchases reflects agricultural trade entering a full recovery, as the two countries move to implement their agreement to expand farm trade following a summit between US President Donald Trump and Chinese President Xi Jinping in May. The United States said at the time that China had agreed to import at least 25 million metric tons of US soybeans annually through 2028, though the Chinese government has not officially confirmed the specific purchase volume.

China has also repeatedly signaled its willingness to expand agricultural trade. Beijing had sharply cut US soybean imports as trade tensions escalated, but resumed purchases following last year's US-China trade truce and has been gradually increasing volumes since.

He Yadong, a spokesperson for China's Ministry of Commerce, said at a regular briefing on July 2 that "agricultural trade is an important component of China-US economic and trade cooperation," adding that "the two sides reached consensus on the direction of expanding agricultural trade through recent economic and trade consultations and agreed in principle to include relevant agricultural products in a mutual tariff reduction framework."

He added that "enterprises will conduct transactions autonomously based on market principles, taking into account actual demand and market conditions," and that "China hopes to work with the United States to create favorable conditions for expanding agricultural trade."

Market observers say the large-scale soybean purchase signals that tariff easing and trade normalization between the two countries is now taking hold in the agricultural sector as well.


yckim6452@heraldcorp.com