U.S. soybean farmers have urged President Donald Trump to secure a trade deal with China that includes substantial soybean purchases, warning of severe long-term economic consequences if the U.S. crop continues to be shunned.
ASA urges Trump to secure China soybean trade deal
On Tuesday, the American Soybean Association (ASA) urged President Trump in a letter to finalize a trade deal with China that guarantees substantial soybean purchase commitments. This call comes as China, the world’s largest soybean buyer, is increasingly turning to Brazilian soybeans due to ongoing trade tensions with the U.S., reported Reuters.
The ASA letter highlighted the financial strain on U.S. soybean farmers, who are experiencing a drop in prices while facing increased costs for inputs and equipment. The letter warned that U.S. soybean farmers may not be able to withstand a prolonged trade dispute with their largest customer, China.
U.S. farmers risk losing billions, the ASA warned, as China increasingly turns to Brazilian soybeans. In 2023–2024, China made up 54% of U.S. soybean exports, valued at $13.2 billion.
Farmers Anxious As China Delays US Soybean Purchases
This plea from U.S. soybean farmers follows President Trump’s recent call for China to quadruple its soybean orders from the U.S. to address its soybean shortage and reduce the trade deficit between the two countries. However, experts have deemed this highly unlikely.
Despite the President’s suggestion, China has not pre-purchased soybeans from the upcoming U.S. harvest, causing concern among traders and farmers.
On a positive note, the outlook for U.S. and global corn and soybean crops in 2025 is generally positive, with strong vegetation health in corn-growing regions and stable conditions for soybeans globally. The record-high yield estimates for corn and the favorable weather forecast for soybeans in August point to a promising harvest season ahead.
Price Action: On a year-to-date basis, Teucrium Soybean Fund ETF (NYSE:SOYB) climbed 4.27%, while Invesco DB Agriculture Fund (NYSE:DBA) rose 1.92%, as per data from Benzinga Pro.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
