China Signs Massive US Soy Deals

David Nealis President of Blue Bridge in Soybean Field

China Signs Massive US Soy Deals

I statement released by the Chinese Government stated; The agricultural ministries of China and the United States will further enhance agricultural exchanges and cooperation, deepening mutual understanding and trust, so as to achieve mutually beneficial development in the future, Minister of Agriculture Han Changfu said. Agriculture was one of the first areas in which China and the United States began to cooperate, as the two are both large nations of agricultural production, trade and consumption and view agriculture as a strategic and basic industry, according to Han.

And shortly afterwards China, the world’s largest soybean importer and consumer, signed agreements to purchase 8.62 million metric tons of the oilseed from U.S. suppliers in a deal valued at $4.3 billion.

A Chinese trade delegation signed agreements with US grain companies to buy 8.62 million tons of soybeans from the United States and will sign more deals in California for a record-setting purchase topping 12 million tons. Chinese powerhouses like COFCO Co Ltd, the country's largest State-owned grain trading house, and Sinograin, which manages state grain reserves, signed deals in Des Moines, Iowa, with Archer Daniels Midland, Bunge Ltd, and Cargill Inc, among others. The soybeans will come from supplies harvested last fall and the crop that will be planted this spring. The value of the purchases in total will be around US$6 billion.

Chinese and U.S. officials have attended a symposium last week in Des Moines, Iowa sponsored by the USDA. Chinese companies intend to invest more on advanced agricultural technology and sustainable farming from the U.S., Xinhua News Agency reported, citing an interview with the Minister of Agriculture Han Changfu, who is accompanying the Chinese Vice-President Xi Jinping his week on his trip to Iowa.