China boosts US agriculture purchases over ‘very tight’ soybeans supply concerns, Ukraine corn worries

Chinese buyers recently booked around 20 cargoes of American soybeans and around 10 shipments of corn

Worries over supplies grow following Russia’s invasion of Ukraine and weaker-than-expected supply from Brazil

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Food security is a critical priority for Beijing as the nation’s imports of corn, soybeans and wheat have soared to record levels, increasing its vulnerability to trade tensions and supply shocks. Photo: Xinhua

Published: 2:18pm, 4 Mar 2022Updated: 12:52pm, 9 Mar 2022

China is scooping up corn and soybeans from the United States as part of efforts to mitigate the risks to commodity supplies from Russia’s war in Ukraine and slower harvests in South America.

Chinese buyers recently booked around 20 cargoes of American soybeans and around 10 shipments of corn, according to traders who asked not to be identified as they are not authorised to speak publicly.

The buying spree reflects robust demand in the top importer as worries over supplies grow following Russia’s invasion of Ukraine and weaker-than-expected supply from Brazil, the world’s biggest soybean producer.

Those purchases come after the phase-one trade deal agreement between China and the US expired without agriculture targets being met.

Through December, the US exported US$34 billion of agriculture to China, short of the US$40 billion target, according to US Census Bureau data.

While both countries are talking about extending the deal, it is expected that China will buy more American products to secure needed grain supply amid tight world stocks.

Russia and Ukraine are among the biggest exporters of major grains like wheat and corn, and also vegetable oils used in cooking.

As shipments from the two countries grind to a virtual standstill, prices of many agricultural commodities have soared.