Trump says China to buy ‘tremendous’ amounts of soya beans
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Soya bean futures in Chicago fell as much as 1.3 per cent following Mr Trump's remarks.
PHOTO: BLOOMBERG
ABOARD AIR FORCE ONE – US President Donald Trump said China will purchase “tremendous” amounts of American soya beans following a meeting to hammer out a wide-ranging trade deal with his counterpart Xi Jinping.
China will start buying immediately, Mr Trump said after a summit with Mr Xi in South Korea on Oct 30, without providing any additional details.
The two countries have agreed to expand agricultural trade, the Chinese commerce ministry said in a statement, without making a specific reference to soy beans.
Soya bean in Chicago slid as much as 2.2 per cent following the meeting – the biggest intraday decline in almost four months – before clawing back some losses.
Futures rallied earlier in the week after US Secretary Scott Bessent said he expected China to makes “substantial” purchases of US supplies.
“I expect choppy markets to continue until we see actual cargoes purchased,” said Mr Joe Davis, a director at brokerage Futures International LLC.
The market was looking for commitments to buy 5 million to 10 million tonnes to be announced following the summit, he added.
China had held off buying US soya beans, hurting American farmers while giving Beijing a key bargaining chip during trade talks.
Just a day before the summit, China signalled some goodwill by making its first purchases of US supplies this season – a trade that was worth more than US$12 billion (S$15.59 billion) in 2024.
Still, the market remains cautious about a revival, given the limited number of cargoes booked so far and a shrinking window for new sales.
China has switched to buying more Brazilian soya beans and recently taken shipments from Argentina, part of its strategy to diversify supply.
The US president’s comments to reporters aboard Air Force One indicated that the leaders had largely formalised a framework agreement negotiated over the weekend in Malaysia.
Mr Trump described the meeting as “amazing” and said other farm products would be purchases immediately, without elaborating. BLOOMBERG
