Treasury Secretary Scott Bessent announced that China has agreed to purchase 12 million metric tons of U.S. soybeans this year. The trade deal offers cautious optimism to U.S. farmers after months of stalled exports.

China pledged to buy at least 25 million tons annually for the next three years. The news helped soybean futures rebound modestly. While the announcement provides some relief, analysts note that the volume remains well below pre-trade-war levels. U.S. exports reached 34.2 million tons in 2020 under the Phase One agreement in 2020.

Farmers expressed mixed feelings. While the volume is smaller than hoped, it signals renewed demand after Beijing largely relied on South American suppliers. The U.S. soybean trade with China was valued at over $12 billion annually before the trade conflict.

Chinese demand is critical for producers facing weak prices, high input costs and full storage bins. Analysts caution that tariffs on U.S. soy may still need to be removed for Chinese importers to profit, unless Beijing provides subsidies.

China’s current soy reserves and slower economic growth could limit purchases, even as farmers hope for stronger follow-through. Early signs of resumed trade include two confirmed cargoes of U.S. soybeans. Observers expect President Trump to ensure accountability as the trade relationship stabilizes.

Read more on the trade agreement with China here.