U.S. Treasury Secretary Scott Bessent said China’s existing purchase commitment under the Busan agreement effectively covers soybean demand for the near term, a comment that has cooled hopes of Beijing announcing a higher buying target while Presidents Donald Trump and Xi Jinping met in Beijing.
"Soybeans are all taken care of," Bessent told CNBC, adding: "And then soybeans, we have a very large purchase commitment from the Busan agreement for the next three years. So beans are really all taken care of," in the interview on Thursday.
Soybeans remain the top U.S. export to China, and the oilseed has been central in trade negotiations across administrations. Market participants have been watching closely for any indication that China would lift its purchase volume above the commitment made last October. Traders and analysts cited in market commentary did not expect Beijing to increase buying beyond that commitment, noting two constraints: weak domestic demand in China and Brazilian supplies priced competitively.
Rather than an immediate increase in purchases, observers say the market is awaiting specifics on how China intends to fulfill last year’s pledge to import 25 million metric tons of soybeans annually through 2028. Meeting that annual target would represent the highest import level since 2022, but details on implementation have yet to be clarified.
China has reduced its reliance on U.S. soybeans markedly since the first Trump administration. The country sourced roughly 20% of its soybeans from the United States in 2024, described in the reporting as the year before Mr. Trump returned to office, down from 41% in 2016. In the most recent year, China purchased just 15% of its soybeans from the United States.
The combination of an existing multi-year purchase commitment and the availability of alternative supplies suggests that markets will focus on the mechanics of fulfilling the 25 million ton pledge through 2028 rather than expecting a fresh, larger buying announcement in the immediate term.