Grain Futures Rally as China Buys U.S. Soybeans Ahead of Trump-Xi Summit

Grain futures climbed in overnight trading on 21 September 2026, driven by fresh Chinese purchases of U.S. soybeans and upbeat signals from officials on both sides ahead of a high-profile summit between Presidents Donald Trump and Xi Jinping scheduled later in the week in Washington.

According to Pro Farmer, at 6:00 a.m. CT December corn was up 5¼ cents, November soybeans were 6 cents higher, and December soybean meal was up $2.10. December SRW wheat gained 7½ cents and December HRW wheat rose 9 cents, with wheat receiving additional support from ongoing disruption to Black Sea grain shipments caused by the Russia-Ukraine war.

China Soybean Purchases

Bloomberg reported overnight, as cited by Pro Farmer, that Chinese state-owned firms booked at least four cargoes — roughly 260,000 tonnes — of U.S. soybeans late last week, with supplies earmarked mainly for loading in December and January from the Pacific Northwest and the U.S. Gulf. The purchases were described by traders who requested anonymity as they were not authorised to speak to the media.

The buying comes as China has passed the halfway mark of a pledge to purchase at least 25 million tonnes of U.S. soybeans annually through 2028, a commitment that forms part of a broader trade truce agreed at a summit in South Korea last October. Bloomberg characterised the soybean target as appearing achievable, noting that sales of new-crop soybeans had "picked up dramatically" since Trump and Xi last met in May 2026.

Broader Farm-Goods Pledge Under Pressure

A separate Chinese commitment to buy at least $17 billion of U.S. farm products annually — beyond the soybean pledge — is described by Bloomberg as looking "challenging." Significant purchases of other major crops, including wheat and corn, have yet to materialise, according to Pro Farmer's report. The two nations have discussed cutting tariffs on American energy and agricultural products ahead of the summit, a step traders say could open the door to increased U.S. agricultural exports.

Preparatory Trade Talks in New York

U.S. and Chinese officials began talks in New York ahead of the summit to lay the groundwork on issues including trade and investment, artificial intelligence and the Iran war. The delegations are led by U.S. Treasury Secretary Scott Bessent and China's Vice Premier He Lifeng. A trade truce under which both sides lowered tariffs and export restrictions is set to expire in November, making its renewal a central agenda item. Bessent described Sunday's discussions as "very successful," while China's top trade negotiator Li Chenggang said they had been conducted in a good atmosphere, according to Bloomberg as cited by Pro Farmer.

Pro Farmer also noted that an announcement of new U.S. tariffs related to allegations of trading partners' excess manufacturing capacity has been delayed until after the summit. Separately, the U.S. and China have been working to reduce levies on American energy and agricultural products as part of a broader initiative to ease barriers on $30 billion worth of products from each side under the Board of Trade mechanism launched earlier this year.

Malaysian Palm Oil

Malaysian palm oil futures edged higher on Monday, hovering near MYR 4,900 per tonne, supported by firmer soyoil on China's Dalian market and expectations of tighter supplies. Pro Farmer reported that India's palm oil imports rose 7% from July to 782,761 tonnes in August — the highest since February — as refiners replenished stocks ahead of the festival season. Indonesia's B50 biodiesel mandate is set to divert more palm oil to domestic use, while El Niño risks could curb output in both Indonesia and Malaysia. Malaysia raised its October crude palm oil reference price but kept the export duty at 10%.

Livestock Markets

Outside grain and oilseed markets, USDA's monthly Cattle on Feed report, released after Friday's close, showed a 1% rise from a year ago in the number of cattle on feed, while August placements slumped 9% to the lowest reading for the month on record going back to 1996. August marketings were down 3% from a year ago. October live cattle futures on Friday rose $0.275 to $215.925 but were down $3.75 for the week.

October lean hog futures fell $0.80 to $78.10 on Friday, hitting a 15-month low, and were down $3.425 for the week. Hog slaughter has outpaced year-ago levels and average hog weights have edged higher, leaving the market with ample pork supplies.