Ceremony Books $3 Billion in Soybeans

Chinese buyers pledge to buy to make soybean purchease for 2011.

Published on: Dec 7, 2010

Chinese soybean buyers have been busy with contracts from 12 different Chinese import companies pledging to spend $3 billion for U.S. soy during a special ceremony recently. Phil Bradshaw, chairman, United Soybean Board, notes: "U.S. soybean farmers' relationship with their Chinese customers spans 30 years."

He made the comments during a ceremony at USDA in Washington, D.C. Commenting on the $3 billion in contracts signed at the event, Bradshaw says: "These contracts are only the latest example of a relationship we expect to grow even more in the future. The soybean checkoff helps drive demand in China and around the world for U.S. soy. Nearly a quarter of the entire 20009 U.S. soybean crop was exported to China. Total global U.S. soy exports soared ten-fold over the last decade to $21 billion in 2010.

During the signing ceremony Jiang Zengqei, vice minister of the China Ministry of Commerce comments: "This visit fully indicates the Chinese government’s sincere wish to expand imports from the United States and to further develop bilateral trade and investment."

One trading company representative on hand was Philip Q Du of JGG America, Inc., a Chinese importer that signed a commitment to purchase the equivalent of more than 18 million bushels of U.S. exports, sees the signing as his company's commitment to purchase U.S. soy due to its history as a reliable supplier of a quality product.

"Just as farmers sign contracts predicting their crop, we as buyers sign commitments predicting our purchases," said Du. "The signing confirms our confidence in the stable supply of soybeans by U.S. producers."