President Donald Trump’s visit to Beijing this week, led to China purchasing increased amounts of U.S. soybeans. China is the world’s largest soybean importer and the U.S. is its second largest supplier.
According to sources, Chinese buyers shall sign a letter of intent with the U.S Soybean Export Council vowing the purchase of a specific volume. Paul Burke, the council’s North Asia regional director, declined to reveal the volume that was agreed upon.
A signing ceremony will be scheduled between President Trump and Chinese President Xi Jinping. China also vowed to purchase U.S. beef as it dropped its 14-year ban on U.S. beef imports. As well as increased amounts of barley and dairy products.
Under the Trump administration, agriculture trade has shined for U.S.-China relations, contrasting the other sectors like steel and aluminum where the two countries are unable to see eye to eye.
According to Burke, another purchase agreement will be signed between a Chinese firm and a U.S. agricultural products exporter. He did not touch on any details.
On a list of the U.S. companies participating in a trade mission with Trump to China, Major grains trading house was seen but the company has not confirmed its participation thus far.
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This year, the U.S. sold 20.7 million tons of beans to China an increase of 14.8 percent from the year prior. In 2016, it sold 40 percent of China’s total soybean imports, or 38.2 million tons.
It is predicted for China import 96 million tons of soybeans in the next two years, an increase from the previous 93.5 million tons, according to the China National Grain and Oils Information Centre.
The agreement followed since U.S. farmers sought to export more beans since cultivating another record crop this year and Brazil set to steal a stake of sales during peak selling season.