China has agreed to purchase 12 million metric tons of U.S. soybeans during the current season through January and will commit to buying 25 million tons annually for the next three years, U.S. Treasury Secretary Scott Bessent announced on Thursday. The pledge forms part of a broader trade agreement between Washington and Beijing aimed at easing tensions that had previously disrupted U.S. agricultural exports.
Bessent also noted that Southeast Asian countries have agreed to buy an additional 19 million tons of U.S. soybeans, though no timeline was provided for those purchases. Following his announcement, the most-active soybean contract on the Chicago Board of Trade reversed earlier losses, rising 1.35 percent to $11.09-1/4 per bushel.
“This deal removes the political uncertainty that has previously used U.S. soybean farmers as leverage,” Bessent said, emphasizing that American producers should now see more stable prospects in the coming years.
The agreement signals a partial return to previous trade volumes, with analysts noting that China’s soybean purchases under the deal are consistent with historical levels. Even Rogers Pay, director at Beijing-based Trivium China, described the move as a restoration of business as usual, while Johnny Xiang of AgRadar Consulting highlighted that commercial buyers are still waiting for clarity on potential tariff reductions. Current tariffs on U.S. soybeans remain a significant factor influencing purchase decisions, and without a full removal or reduction, Chinese buyers may have limited incentive to import American soybeans.
China, the world’s largest soybean importer and historically the top destination for U.S. farmers, had previously used its crop purchases as leverage during the U.S.-China trade war. High import duties on U.S. soybeans led Chinese buyers to favor South American suppliers, reducing U.S. market share from 41 percent in 2016 to roughly 20 percent in 2024. The decline in Chinese demand cost U.S. farmers billions in potential sales, highlighting the high stakes of the current trade arrangement.
U.S. President Donald Trump confirmed that China will now begin purchasing substantial volumes of soybeans, sorghum, and other farm products, while U.S. Agriculture Secretary Brooke Rollins praised the development, particularly for soybeans and sorghum, as a positive step toward stabilizing U.S. agricultural exports.
The market is closely watching whether China will follow through on the purchase commitments and whether tariffs on U.S. soybeans will be adjusted, key factors that will determine the scale and pace of future sales.
