China has snapped up more U.S. soybeans following last week’s trade talks in Washington.
State-run food company Cofco Corp. purchased more than one million tons of American soybeans, the company said in a statement on Saturday. “To implement the consensus that the leaders of both China and the U.S. have come to, COFCO has already purchased in batches several millions of tons of American soybeans,” according to the notice.
The soybeans will be shipped in the April-July period and loaded at ports both in the U.S. Gulf and the Pacific Northwest, people familiar with the matter told Bloomberg earlier. The transaction comes ahead of China’s Lunar New Year holidays, when Cofco is expected to be absent from the market, the people said.
The purchase comes after President Donald Trump said that China, the top soybean importer, had agreed to buy a total of 5 million tons of U.S. supplies following last week’s talks in Washington. That’s on top of the estimated 5 million bought in the weeks after Trump met with his counterpart Xi Jinping in December.
China has been buying U.S. soybeans as a sign of goodwill while trade delegations try to sort out wider problems such as intellectual property.
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