China is expected to surpass Mexico this year as the second-largest buyer of U.S. farm products, like these Iowa soybeans.
China wrapped up its biggest ever one-off U.S. soybean purchase on Friday in a $6.7 billion deal equivalent to nearly half of last year’s total trade, surprising dealers who had expected a more symbolic volume.
With a second tranche of deals on Friday to buy 8.45 million tonnes, Chinese firms traveling as part of President Hu Jintao’s state visit signed up to purchase 11.5 million tones of soybeans for delivery over the next year or so, enough to sate China’s total import needs for two or three months.