China, U.S. Strike Second Largest Soybean Deal on Record
A visiting delegation of commodity buyers from China recently signed agreements to buy 12.53 million tons (460 million bushels) of U.S. soybeans valued at approximately $5 billion, marking the second largest soybean deal between two countries, according to the American Soybean Association (ASA).
The delegation was hosted in Des Moines, Iowa, by the U.S. Soybean Export Council (USSEC), the United Soybean Board (USB), the ASA, the Iowa Soybean Association, and with involvement from the China Chamber of Commerce for Import and Export of Foodstuffs, Native Produce and Animal By-Products (CFNA).
Last year China bought 9 million tons of U.S. soybeans valued at about $4 billion, and U.S. soybean exports to China during the current marketing year have already reached a record 34 million tons.
The acceleration in Chinese soybean purchases is indicative of the country’s growing middle class, its increased demand for protein, and the pressure that that demand is putting on China’s livestock sector.
The purchase agreement comes one week before Iowa Gov. Kim Reynolds is scheduled to head an agricultural trade mission to China.