China meets trade pledge with surge in US soybean purchases, but keeps Brazil option open

China has bought approximately 12 million tonnes of US soybeans over the past three months, fulfilling a key trade commitment made to the Trump administration. This buying surge, mainly by state-owned firms, is directed towards strategic reserves, marking a notable shift in China's purchasing strategy. Easing tariffs and restrictions have enabled these imports, following a period of relative avoidance. China has pledged to buy 25 million tonnes of US soybeans annually through 2028, having completed nearly half of that target in a short timeframe. Attention now shifts to whether China will maintain this purchasing pace, especially with them starting to book new-crop soybeans from Brazil. This dual sourcing strategy indicates a critical reliance on both the US and Brazilian supplies, with seasonal availability and price influencing future purchases. The renewed demand from China is supportive for US soybean prices while enhancing food security and diplomatic commitments for Beijing.