China purchased about 1 million metric tons of U.S. soybeans this week on the eve of Xi Jinping’s visit to the United States

(Deutsche Welle Chinese website) Four traders told Reuters that China purchased about 1 million metric tons of U.S. soybeans this week. The purchase took place on the eve of Xi Jinping’s visit to the United States this month.

After completing the purchase, China's total purchase of U.S. soybeans has reached nearly half of the annual amount that the White House says Beijing has committed to buying - 25 million tons per year by 2028, according to the White House.

China's purchases of U.S. soybeans help solidify trade and diplomatic ties with Washington, but the purchases also come at a time when global supplies of the oilseed are tightening, with inventories dwindling in top exporter Brazil.

An Asian trader said Sinograin’s purchases have increased in the past few days and were purchased before Xi Jinping’s visit to the United States.

Chinese state-owned purchasers Sinograin and COFCO did not immediately respond to Reuters' request for comment.

The U.S. Department of Agriculture reported on Wednesday that 340,000 tons of U.S. soybeans were sold to China, and another 100,000 tons were sold to buyers with unknown destinations.

After a tit-for-tat tariff war last year, China still imposes a 10% tariff on all U.S. goods, including agricultural products. If soybean tariffs are lowered, it may prompt Chinese private crushing companies to re-purchase U.S. supplies - a market that has been largely blocked by previous tariffs.

After the leaders of the two countries met in May this year, Washington stated that China agreed to purchase US$17 billion worth of US non-soybean agricultural products annually by 2028, while maintaining its commitment to purchase 25 million metric tons of US soybeans per year during the same period.

Trump previously said that Xi Jinping would visit Washington on September 24. China has not yet confirmed the date of the visit, nor the amount of U.S. soybeans or other agricultural products it plans to purchase.