China Makes First Inquiry to Buy US Wheat After Trump-Xi Summit

After the September summit between the US and Chinese presidents, COFCO, China's state-owned grain trader, made its first inquiry about purchasing US wheat, signaling that Beijing may be preparing to expand its purchases of US crops beyond soybeans.

Bloomberg, citing people familiar with the matter, reported that COFCO's inquiry concerned US soft red winter wheat, with the cargoes planned for shipment to China next year.

According to information released by both countries after the meeting between US President Donald Trump and Chinese President Xi Jinping, China will lower tariffs on a range of US agricultural products, including wheat, corn and sorghum.

This is part of a plan by both sides to reduce tariffs on about $30 billion (S$38.3 billion) of imported goods.

The report said COFCO's inquiry is the first sign that the tariff-reduction arrangement could drive China to buy more major grains.

China had previously committed to purchasing at least $17 billion of US agricultural products annually through 2028, and to buying at least 25 million tonnes of US soybeans each year during that period.

Chinese state buyers are steadily advancing soybean purchases, but progress on other agricultural products has been much slower.

So far this marketing year, the US has not sold any wheat or corn to China.

China has again had a bumper wheat harvest, and domestic supplies remain ample.

Imports have rebounded somewhat but remain well below previous levels, and overall demand is still sluggish.

The US Department of Agriculture expects China's wheat output to exceed 140 million tonnes in the 2026-27 marketing year, with imports projected at 6 million tonnes.

Although imports would be higher than the previous year, they would still be more than 50% below the record set in 2023-24.