China, the world’s top soybean importer, indicated that it will buy US soybeans once Washington lifts what it termed as “unreasonable tariffs”, a spokesperson for the Chinese Ministry of Commerce or Mofcom said Sept. 25.

The biggest obstacle currently affecting normal US-China trade lies in unilateral restrictive measures from the US, He Yadong, a spokesperson for Mofcom said at a press briefing in response to questions regarding potential Chinese purchases of US soybeans and Boeing aircraft.

For the first time since the 1990s, China has not booked any US soybeans after the two countries slapped reciprocal tariffs on each other.
Senior Chinese trade negotiator Li Chenggang met political and business leaders from the US Midwest Sept. 22, which market participants saw as a signal that China could purchase some US soybeans.

However, disagreement on technical details appears to be complicating negotiations according to media reports with Chinese and US trade officials set to meet again at the US Treasury Sept. 25.

Farmers mount pressure

In the US, farm associations are asking the administration to secure a trade deal with China as China upped its soybean purchases from Brazil and Argentina to replace the beans coming out of the US.

“US farmers cannot wait any longer,” American Soybean Association President Caleb Ragland said Sept. 24. “The frustration is overwhelming. US soybean prices are falling, harvest is underway, and farmers read headlines not about securing a trade agreement with China.”

US soybean industry’s problems have been further complicated this week after Argentina cut its export tax on soybeans and byproducts to zero on Sept. 22, initiating a frenzy of soybean purchases by Chinese buyers.

China is reported to have purchased 20 to 30 shiploads of soybeans from Argentina according to market estimates, before the Argentine government reimposed grain export taxes Sept. 25, citing that the country had hit its target of selling $7 billion worth of exports in less than 72 hours.

US Treasury Secretary Scott Bessent said Sept. 24 on X, formerly known as Twitter, that he was working with Argentine President Javier Milei “to end the tax holiday for commodity producers converting foreign exchange.”

Platts, part of S&P Global Commodity Insights, assessed SOYBEX FOB New Orleans for November shipment at $394.63/mt Sept. 24, down 3.4% from the start of the month.
Source: Platts