Discussions Lead to Chinese Mega Soybean Purchase

As a result of high-level trade talks a week ago, China has agreed to purchase 600,000 tons of soybeans grown in the USA. As a result of the purchase, the price of soybean futures in the US climbed by more than 1 percentage point on the Chicago Board of Trade.

Soybeans. Photo courtesy CSIRO


The deal will result in the shipment of about 10 boatloads of soybeans, which will be spaced over the time period between October and December, all heading off to Chinese shores.


The announcement about the soybean purchase came on the heels of the bad news that Chinese trade officials had cancelled a scheduled visit to US farm states. Except for this one decision, trade talks had proceeded positively. More negotiations between the US and China are scheduled for October has the trade war between the two powerful global economies continues.


In early September this year a Chinese state news agency reported that some farm products, pork and soybeans, were no longer subject to additional tariff increases. The announcement helped to reduce tensions between the trading partners and make way for the recent soybean deal.

James Cannon

About James Cannon

James Cannon is an experienced hedge fund analyst. He has served on the advisory boards for various different Fortune 500 companies as well as serving as an adjunct professor of finance. James Cannon has written for a variety of Financial Magazines both on and off line. Contact James at james[at]businessdistrict.com