Commodity importers from China signed agreements last week to buy billions of dollars worth of U.S. agricultural goods during the China-U.S. Sustainable Agricultural Trade Forum in Iowa.
According to the U.S. Soybean Export Council, 11 purchasing agreements were signed with companies like Archer-Daniels-Midland Co., Bunge, Cargill, and CHS. The purchases were for mainly soybeans but also included corn, sorghum, and wheat.
The deals were signed as "frame contracts," which are typically non-binding letters with the intent to buy at a later date, without formal sales terms.
On October 25th, the day after the trade forum, the USDA reported sales of 126,000 metric tons of soybeans, or approximately 277.8 million pounds, to China. The agency announced another 110,000 metric tons of soybeans, roughly 242.5 million pounds, on October 26th.
“These contracts illustrate the gains from trade: food is moving from surplus regions to deficit; the confidence behind these contracts allows U.S. producers to invest where we have agriculture advantages; and this relationship will help foster innovation needed to sustainably intensify production to deliver nutrition and food security sustainably" said Acting Deputy Under Secretary, USDA Trade and Foreign Agricultural Affairs - Jason Hafemeister.
According to the U.S. Soybean Export Council, "China is the world and Asia’s most populous country, and the world’s second largest economy. China is the world’s number one soy consumer, and the number one importer of U.S. Soy, which enables its world leading aquaculture, animal nutrition, egg, edible oil, pork, soy- and plant-based food sectors. Soybeans continue to be the United States’ number one food and agricultural export to China U.S. Soy has collaborated with China since 1982."
“People are the foundation of a nation, and food is a paramount importance. The China-U.S. agricultural cooperation is a rich land with bright prospects. China is the world’s largest importer of U.S. agriculture exports. The contracts signed today are multiple billions in value. Let us sow more seeds of cooperation on the fields of hope”, said Ambassador Xie Feng, Embassy of the People’s Republic of China in the U.S.A.
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