U.S. soybean futures soared to their highest level since June 2024 on Monday as China intensified purchases of American soybeans following the recent trade agreement with Washington. COFCO, China’s state-owned grain trader, bought at least 14 cargoes totaling roughly 840,000 metric tons for shipment in December and January, marking the country’s largest U.S. soybean purchases since the October summit between Presidents Donald Trump and Xi Jinping in South Korea.
The White House previously reported that China had pledged to purchase 12 million metric tons of U.S. soybeans this year, but only a small portion of that target had been fulfilled before Monday’s transactions. U.S. Agriculture Secretary Brooke Rollins highlighted the progress, noting that while only about 330,000 tons had been shipped so far, officials expected the remaining commitments to be met once agreements are finalized.
At the Chicago Board of Trade, January soybean futures SF26 climbed 32-3/4 cents to close at $11.57-1/4 per bushel. Corn and wheat also posted gains, with December corn CZ25 up 4-1/2 cents at $4.34-3/4 per bushel and December soft red winter wheat WZ25 rising 17 cents to $5.44-1/4 per bushel, its highest level since July.
Traders attributed the soybean rally in part to recent public remarks by President Trump affirming China’s commitment to buying more U.S. soybeans and other agricultural products. Matt Ammermann, commodity risk manager at StoneX, observed that these comments added momentum to the market after weeks of subdued U.S. sales.
China, historically the world’s largest soybean importer, had relied heavily on South American supplies during the height of its trade dispute with the U.S., leading to a glut of soybeans in the country. Analysts noted that this oversupply could temper the pace of additional purchases, even as U.S. farmers and exporters welcome the renewed market access.
The USDA slightly lowered its soybean export forecast for the current crop season last week, though some analysts argue the estimate may still be optimistic given global market dynamics. Despite these uncertainties, Monday’s surge in futures underscores the significant impact of China’s buying activity and the ongoing importance of trade relations in shaping U.S. soybean markets.
