Milestones marked in China-U.S. trading relations

Much has been made of China’s seemingly insatiable demand for whole U.S. soybeans. Two key milestones passed in recent months that illustrate the strength of that ongoing relationship.

In November 2010 and January 2011, separate delegations from major Chinese buyers visited Washington, D.C., and Chicago to sign commitments to purchase $9.68 billion in U.S. soybeans. These purchases came on the heels of the remarkable 2010 marketing year, the third-consecutive year of record-breaking U.S. soybean exports to that nation. China receives nearly half of all U.S. soybean exports and about 25 percent of the U.S. soybean harvest.

On Jan. 20 and Jan. 21, Chinese buyers visiting Chicago committed to purchasing $6.68 billion in U.S. soybeans, totaling more than 423 bushels. In November, Chinese buyers had signed agreements at the offices of the U.S. Department of Agriculture to purchase $3 billion. More such agreements are expected; U.S. soybeans enjoy a Chinese market share of more than 50 percent, up from 34 percent five years ago (see “China’s Rising Demand” article in the Exports section).

The Chicago delegation, which was led by Chinese Vice Minister of Commerce Wang Chao, finalized 21 deals with U.S. grain companies, including Cargill, ADM and Bunge. The group of Chinese businessmen and officials was part of Chinese President Hu Jintao's state visit, when he met with President Barack Obama on a range of matters in Washington. While Hu was conducting political meetings, the soybean signing in Chicago drew Illinois Gov. Pat Quinn. The Washington signing two months before had drawn U.S. Secretary of Agriculture Tom Vilsack.

“This is a huge event for soybean farmers – this isn’t something that happens every day,” Jim Call, USB’s International Marketing chair, said at the Jan. 20 signing, speaking to the U.S. and international media that attended the soybean checkoff's