Argentina and the US are increasing soybean sales to China

According to the Rosario Grain Exchange, Argentine farmers have stepped up soybean sales amid a sharp rise in prices caused by increased demand from China and forecasts of a reduced harvest in the United States.

 

Between August 27 and September 2, 1.03 million tons of soybeans from the 2025/26 harvest were sold, which was the highest weekly figure since late July, Reuters reports.

 

The increase in soybean prices is being driven by rising oil prices caused by the war between the US and Iran, the deterioration of the US crop situation, and high demand for American soybeans from China, which has become particularly important on the eve of the meeting between US President Donald Trump and Chinese President Xi Jinping, as the easing of US tariff policy could help China increase purchases of American soybeans until the new crop from the Southern Hemisphere enters the market in January.

 

At the same time, Brazil cannot sharply increase soybean supplies to China in the fourth quarter due to significant demand from other buyers and increasing domestic processing volumes.

 

According to the Rosario Stock Exchange, Brazil exported 64.7 million tons of soybeans in the first eight months of 2026, 70% of which went to China. China's share of Brazilian exports fell from 76% in 2025 to 70% in 2026, the lowest level since 2022, as China diversified its purchases.

 

According to market operators, during September 7-11, Chinese state-owned corporations Sinograin and COFCO purchased about 1 million tons of soybeans from the United States, after which the total volume of soybeans contracted by China from the United States reached almost half of the annual mandatory volume of 25 million tons. The purchase took place on the eve of the visit of Chinese leader Xi Jinping to the United States, which is scheduled to take place in late September.