China’s Crushers Key in the Q4 Kacang Book Contract amid US Trade Uncertainty
Crushers China sold nearly 2 million metric Ton Soyymeal to a local feed factory on Tuesday, the largest single sales in 2025, due to attractive prices and concerns over Washington-Beijing’s trading tension triggered fears of soybean supply, traders and analysts said.
The local feed factory ordered around 1.9 million tons of Soyymeal for shipping between October and January, due to lack of progress in US-Chinese trade talks raises fears of supplies during the US soybean marketing season in the fourth quarter.
“Users and domestic downstream soybeans are active buyers yesterday, because Chinese soybean coverage for Q4 and January-February 2026 has fallen significantly behind the historical level,” said Cheang Kang Wei, Vice President at Stonex in Singapore.
“This shortage is mainly due to the ongoing US-China trade conflict.”
Tuesday’s sales compared to Soyymeal sales going forward around 850,000 tons last week, according to Wang Wenshen, an analyst at Sublime China Information based in Shandong.
Prominent Chinese soybean processing companies such as Sinograin and Cofco are key sellers, the source said.
Sinograin and Cofco did not immediately respond to Reuters’ requests to comment.
China, so far the largest soybean importer in the world, buys oil seeds to make soybeans for animal feed and Soyoil to cook.
Crushers usually sell Soyymeal forward to lock prices and secure processing margins, while looking for soybeans from the international market as their main raw material.
“Concern for the falling Chinese agricultural agreement, along with a profitable crush margin in the futures market, motivates the company to lock profits,” Wang said.
The purchase of Chinese soybeans has been devastated in the midst of the ongoing US-China trade tension, with the two countries not yet reached an agreement even though there were several negotiation rounds.
Source: Reuters
