COFCO Continues Purchasing U.S. Soybeans as China-U.S. Agricultural Trade Accelerates
Claire Weston
COFCO booked at least five more cargoes of US soybeans overnight, on top of six already traded this week — the post-summit purchase rush is real, but a 10% surcharge tariff and cheaper Brazilian beans still cap how far it can go.
How much has COFCO bought?
Bloomberg, citing people familiar with the matter, reports COFCO ordered at least five cargoes overnight for September–October shipment.
That follows at least six cargoes earlier this week — a combined 11-plus cargoes, each roughly 60,000 tonnes, totalling close to 660,000 tonnes.
This means → COFCO is placing concentrated state-trader orders at a pace well above routine commercial buying.
Why the sudden acceleration?
The buying spree follows the US-China leaders' May summit and is a concrete step toward delivering on the trade-truce pledges.
The White House says China agreed to buy at least 25 million tonnes of US soybeans annually through 2028, plus at least $17 billion in additional US farm products.
Beijing has not publicly confirmed those figures; Chinese officials say both sides are negotiating tariff concessions on select agricultural goods and working to uphold last year's truce deal.
In plain terms = Washington announced a big number, Beijing neither denied nor endorsed it, and the current buying looks more like "act first, negotiate later."
What does this mean for US farmers and futures?
As of late last month, USDA data showed Chinese buyers had committed to 200,000 tonnes of new-crop US soybeans; this latest batch will push that figure sharply higher.
With the new marketing year starting in September, sustained Chinese purchases give US exporters and growers a direct lift.
Chicago soybean futures have firmed in recent sessions — this reflects the market already pricing in rising Chinese demand.
What could stall the momentum?
US soybeans currently carry an extra 10% tariff, keeping private crushers on the sidelines — a state trader's willingness to buy does not mean the private sector will follow.
Commodity3 data shows that even without the surcharge, freshly harvested Brazilian beans remain cheaper than US supply.
This means → unless the tariff comes down or the Brazil price gap narrows, COFCO's "policy-driven buying" will struggle to become an industry-wide norm.
The next signpost: whether Washington and Beijing signal further tariff relief ahead of an expected meeting later this year.
Content is for reference only, not financial advice.