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The U.S. Department of Agriculture said Friday morning that China agreed to buy 136000 tons of U.S. soybeans, the third day in a row that the United States announced a purchase contract with China, the world's largest soybean importer.
Chinese buyers have signed a contract this week to buy 606 thousand tons of us soybeans, all of which will be shipped in the 2019/20 sales year. Previously affected by the new coronavirus pandemic, soybean futures prices fell to an 11 month low.
Three sources told Reuters that China is preparing to purchase more than 30 million tons of agricultural products to supplement its national reserves to prevent supply chain disruption caused by the new crown epidemic. Most of these purchases will come from the United States, which is also to fulfill China's commitment to purchase more American agricultural products under the first phase of China US trade agreement.
Two people familiar with the government's plan said China plans to buy about 10 million tons of soybeans, 20 million tons of corn and 1 million tons of cotton to enrich its national reserves.

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