Chinese Buyers Commit to Purchase $2.1 Billion of U.S. Soy
- General News
Chinese buyers committed to purchase 5.1 million metric tons (MMT) of U.S. Soy valued at $2.1 billion USD at a soybean contract signing ceremony in Des Moines, Iowa, on October 14. This amount of soybeans represents nearly one third of the total Iowa soybean crop.
“We were honored to be joined by a group of Chinese provincial officials and crush company representatives, who traveled 7,000 miles to meet with U.S. exporters to sign 16 purchasing agreements,” says Jim Miller, USSEC Chairman, ASA Director, and Nebraska soybean farmer. “These agreements are an example of the strong partnerships between the U.S. Soy value chain and the international buyers who purchase our crop.”
During the event, CFNA President Bian Zhenhu spoke about the importance of trade collaboration between the U.S. and China. “This signing ceremony is just one manifestation of our cooperation,” he stated.
Iowa Governor Terry Branstad talked about the trust, honor, and respect that have helped foster the long relationship between Chinese President Xi Jinping and U.S. soybean farmers, displaying a photo that showed the Chinese leader’s first visit to Iowa in 1985. “It’s pretty neat when you have the president of China call you an old friend,” he stated.
The purchase agreements were signed by seven of the top ten Chinese soybean buyers, including state-owned COFCO and Sinograin and privately held Sunshine group. Sellers included large grain traders such as Archer Daniels Midland, Bunge and Cargill
Shipment details for the deals were not disclosed.
Some of Friday's purchase agreements between U.S. exporters and buyers from China, the world's top soybean importer, are expected to be "frame contracts," with terms to be finalized at a later date.
At a signing ceremony held in Indianapolis, Indiana on August 30, Chinese importers had previously signed letters of intent to purchase 3.9 million metric tons of new crop U.S. Soy, valued at $1.78 billion.