Chinese raise their U.S. soybean purchase commitments from $1.8 billion to $2.1 billion

Six weeks ago, Chinese buyers committed to purchase nearly $1.8 billion worth of U.S. soy, totaling 146 million bushels of U.S. soybeans. Chinese buyers recently made an even larger commitment, signing contracts worth $2.1 billion of U.S. soy, or 5.1 million tons.

The new commitments were signed at a ceremony held in Des Moines and attended by seven of the top Chinese buyers of U.S. soy, Chinese commerce officials, top Iowa state officials and representatives from the U.S. soy industry. The signing ceremony was hosted by the U.S. Soybean Export Council (USSEC) and the Iowa Soybean Association. Governor Terry Branstad, Lieutenant Governor Kim Reynolds and Iowa Secretary of Agriculture Bill Northey were in attendance.

Iowa Governor Terry Branstad talked about the trust, honor and respect that have helped foster the long relationship between Chinese president Xi Jinping and U.S. soybean farmers, sharing a photograph that shows the Chinese leader's first visit to Iowa in 1985. "It's pretty neat to have the president of China call you an 'old friend,'" he stated.

This year, U.S. soybean farmers are projected to export a record amount of soy and soy products, up from 62.88 million metric tons of soy and soy products, valued at $27.7 billion, in 2015. International buyers are turning to U.S. soy for a variety of reasons, including its quality, sustainability and reliability, to name a few.

China Chamber of Commerce for Import & Export of Foodstuffs, Native Produce and Animal By-products (CFNA) president Brian Zhenhu spoke about the trade collaboration between the U.S. and China. "This signing ceremony is just one manifestation of our cooperation," he said.

These sentiments were echoed by the U.S. soy industry. "We were honored to be joined by a group of Chinese provincial officials and crush company representatives, who traveled 7,000 miles to meet with U.S. exporters to sign 16 purchasing agreements," said Jim Miller, USSEC chair, American Soy Association (ASA) director and Nebraska soybean farmer. "These agreements are an example for the strong partnerships between the U.S. soy value chain and the international buyers who purchase our crop."