CHICAGO: US President Donald Trump called on China to quadruple its soybean purchases from the US in a late-night social media post.
His statement sent Chicago soybean prices up by 2.38% to $10.11 a bushel in early trading on Monday.
China, the world’s top soybean importer, bought about 105 million metric tons last year, with only a quarter sourced from the US.
Analysts quickly dismissed the feasibility of China increasing US soybean imports fourfold.
“It’s highly unlikely that China would ever buy four times its usual volume of soybeans from the US,“ said Johnny Xiang of AgRadar Consulting.
The current tariff truce between the US and China is set to expire on August 12, with possible extensions under discussion.
Trump’s push for higher soybean sales comes as Washington seeks to reduce China’s trade surplus with the US.
China’s soymeal futures dipped 0.65% amid expectations of increased US soybean supply.
Beijing has not yet responded to Trump’s latest demand.
Under the Phase One trade deal, China pledged to buy more US farm goods but fell short of its targets.
This year, China has not purchased any fourth-quarter US soybeans, raising concerns ahead of the US harvest season.
“China is prepared to forego US soybeans this year, including test cargoes from Argentina,“ said analyst Even Rogers Pay.
Chinese feedmakers have already secured Argentine soymeal shipments as a hedge against potential supply disruptions.
The US soybean industry is searching for new buyers, but none match China’s massive import capacity.
Last year, China imported 22.13 million tons of US soybeans compared to 74.65 million tons from Brazil. - Reuters
