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American soybean farmers got some rare good news on Wednesday just hours before a high-stakes meeting between Chinese President Xi Jinping and US President Donald Trump when news broke that Beijing had placed its first order after months of trade tension that saw shipments blocked. The Trump administration hailed the move as a “positive step forward” for farmers, touting the “America first” leader’s deal-making prowess. US growers, meanwhile, called the purchase “encouraging” and said they’re hoping for a lasting deal that brings real relief to the heartland. “Today’s purchase by China of multiple ships of American soybeans signals @POTUS’ strong dealmaking and a positive step forward for our farmers,”, US Agriculture Secretary Brooke Rollins posted on social media. She added that the purchase coming “directly” ahead of the sit-down, which is scheduled on the sidelines of the Asia-Pacific Economic Cooperation in South Korea on Thursday morning, shows that “American means business, that we will restore balance”. Farmers breathed a sigh of relief as well. “This is huge,” said David Burrier, a third-generation farmer from Maryland. “This is absolutely what we were hoping … we are encouraged, honestly.” Burrier emphasised that the resumption of China purchases was a sign that both leaders are “working together”. “I’m very excited for both countries and both leaders,” he said, hoping that any agreement reached on Thursday will be fulfilled. According to media reports, China’s state-owned food processing company, COFCO, has placed orders for about 180,000 metric tons (177,157 tons) for December–January shipment from the Pacific northwest. In 2023-24, the US shipped nearly 25 million metric tons to China, according to the American Soybean Association. Asked about the orders during a press conference, China’s Foreign Ministry spokesman, Guo Jiakun, said that China’s position on the relevant issue remains consistent, deferring further details to the “competent authorities”. COFCO did not respond to a request for comment. After reaching a 15-month high on trade-deal optimism Tuesday, soybean futures slipped Wednesday as US farmers took profits from the previous session’s rally. China has been among the top buyers of US soybeans, accounting for 45 per cent of its exports. However, as Washington imposed tightened restrictions on the export of high technology to Chinese companies and their investments in the US, China diverted its orders to Brazil and Argentina. After reaching a 15-month high on trade-deal optimism on Tuesday, soybean futures slipped Wednesday as US farmers took profits from the previous session’s rally. Over the weekend, US Treasury Secretary Scott Bessent told US media that China will be making “substantial” purchases of American soybeans. This came after he held in-person discussions with Chinese Vice-Premier He Lifeng in Kuala Lumpur, Malaysia, to lay the ground for the leaders’ summit. Caleb Ragland, president of the soybean association, warned during a Senate Judiciary Committee hearing on Tuesday that soybean farmers were expected to face a loss of US$109 per acre (US$269 per hectare) as a result of the “loss of our largest export market due to trade retaliation by China”. Sean Stein, president of the US-China Business Council, said in a statement on Wednesday that the lobbying group was looking forward to the announcement of a “great deal” that will “yield immediate benefits to American farmers, workers and businesses”. “This will serve as a foundation to an even bigger deal in the future when both leaders exchange visits,” he added.
