China inks record soybean deals with U.S. companies

by World Grain Staff
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DES MOINES, IOWA, U.S. — A Chinese trade delegation signed agreements with U.S. grain companies on Feb. 15 to buy 8.62 million tonnes of soybeans from the U.S., and plans to make more deals on Feb. 16 for a record-setting purchase topping 12 million tonnes, Reuters reported.

COFCO Co Ltd, China’s largest state-owned grain trading house, and Sinograin, which manages state grain reserves, signed deals in Des Moines, Iowa, U.S., with Archer Daniels Midland (ADM), Bunge Ltd and Cargill, among others, the news agency reported.

The Chinese delegation was expected to sign more purchase agreements in Los Angeles, California, U.S. on Feb. 16, which would bring the total amount to a record of more than 12 million tonnes, said Kirk Leeds, director of the Iowa Soybean Association.

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 $6 billion, Reuters reported.

Last year, Chinese companies signed deals to buy 11.56 million tonnes of U.S. soybeans valued at $6.68 billion in the then largest one-off purchase of U.S. soy, the news agency reported.

 

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