U.S. soybean futures retreated on Tuesday after a recent surge that brought prices to their highest level since June 2024, following news of significant Chinese purchases of American soybeans. While wheat reached a multi-month high and corn edged slightly higher, soybean markets cooled as traders digested the latest developments.
The U.S. Department of Agriculture confirmed China purchased 792,000 metric tons of U.S. soybeans. However, much of the buying had already been anticipated by the market after reports that Chinese state-owned grain trader COFCO secured around 840,000 metric tons for delivery in December and January. Analysts noted that the prior reporting had largely factored these volumes into soybean prices.
At the Chicago Board of Trade, January soybean futures closed down 3¾ cents at $11.53½ per bushel, after earlier reaching $11.69½. December soft red winter wheat ended up 2¼ cents at $5.46½, while December corn rose 2 cents to $4.36¾ per bushel.
Despite the recent activity, China remains far from meeting its pledged 12 million-ton purchase target for the year. The country had previously shunned U.S. soybeans during its trade war with Washington and is currently managing a surplus of South American imports. Monday’s U.S. purchases were the largest since the late October summit between Presidents Donald Trump and Xi Jinping.
Analysts stress that even if China fulfills its commitment, time is short to reach the target before the end of the year, and the large volumes needed continue to influence market sentiment. Meanwhile, Chinese customs cleared a shipment of Argentine soybean meal—the first since Beijing approved such imports in 2019—indicating a renewed trade channel with the world’s leading soymeal exporter.
The combination of anticipated Chinese demand, global supply considerations, and emerging trade channels underscores the dynamic factors influencing U.S. grain markets as the year-end approaches.
