A sudden buying surge by Chinese state traders has absorbed nearly one million tonnes of US soybeans following a sharp weekly price slump. The move highlights how global feed processors are facing shifting ingredient costs driven by strategic buying ahead of key diplomatic meetings.

China’s state trading enterprise Sinograin spearheaded a large-scale buying spree late last week, securing an estimated 14 to 16 cargoes totaling approximately one million tonnes of US soybeans for October and November delivery. The US Department of Agriculture confirmed nearly half a million tonnes of these transactions on Monday, signaling a rapid acceleration in procurement. Importers capitalized on a 5.2% fall in Chicago Board of Trade soybean futures, contracting shipments out of both U.S. Gulf Coast and Pacific Northwest terminals. Trade sources noted premiums of $3.03 per bushel over the November contract for Gulf shipments and $3.00 per bushel for Pacific Northwest loading. "These deals were mainly done by Sinograin and the main reason is a drop in prices last week. There are plans for President Xi to visit the U.S. in September so China is also trying to buy U.S. beans under its commitment made to Washington," stated an Asia-based trader at an international trading house.

Prior to these deals, Chinese soybean purchases from the US stood slightly above 4 million tonnes for the year, though official data shows the current momentum remains the fastest seen in four years. Under previously announced White House terms, China committed to importing 25 million tonnes of US soybeans annually through late 2028.