With tensions running high in the soybean market this year, President Trump’s 90-day trade truce with China was a small light in the darkness for many farmers around the country. However, no one was getting their hopes up until proof of the “immediate purchase of agricultural products” actually happened. Perhaps an early Christmas gift to farmers, USDA confirmed today 1.13 million metric tons of U.S. soybeans for delivery to China.
Farmers are finally seeing results of the promise after Thursday morning’s announcement of confirmed purchases. After 13 days after the trade truce, the purchase of U.S. soybeans was announced. USDA has private exporters reporting export sales of 1.13 million metric tons of soybeans for delivery to China during the 2018/2019 marketing year. The marketing year for soybeans began Sept. 1.
Trump tweeted on Dec. 3 that farmers would be a “BIG and FAST beneficiary of our deal with China.” Without actual proof of purchase, markets were slow to reflect many changes. Soybean markets have been holding off for the past few days after rumors of the purchase started. Hopefully, the markets will soon reflect the new exports.
The truce comes after many months of back and forth tariffs between the two countries. Farmers were caught in the middle with little options for market opportunities.