China’s renewed purchases of U.S. soybeans are alleviating some of the pressure on the American farm sector after a challenging year, though agricultural ETFs have not reacted strongly yet. Since early October, China booked just more than 1 million tons of U.S. soybeans-its biggest daily purchase in two years-after the trade truce signed last month between President Trump and Chinese leadership, according to Bloomberg.
The resumption of buying marks a significant course reversal since Beijing lifted tariffs on U.S. soybeans to 34% in April, reducing imports to almost zero and helping drive a record agricultural trade deficit. As welcome as this recent activity has been for farmers, ETF investors at least seem to be adopting a wait-and-see attitude about whether the improvement will extend into future months.
