Imported soybeans are unloaded at a port in Nantong, Jiangsu province. On Thursday, soybean futures for November delivery rose 0.5 percent to close at $8.68 a bushel on the Chicago Board of Trade. [Xu Congjun/For China Daily]

Nation to buy more oilseeds as animal feed demand increases

Members of a trade delegation from China, the world's top soybean importer, signed agreements to buy a record 13.18 million metric tons of the oilseed worth around $5.3 billion from United States shippers after annual negotiations.

US industry representatives and members from the Chinese delegation announced the agreements on a conference call after talks in Des Moines, Iowa. US shippers outlined in 24 agreements included Archer-Daniels-Midland Co, Cargill Inc and Louis Dreyfus Group. The cargoes are set for delivery by Aug 31, according to the US Soybean Export Council.

China will import a record 79 million tons from around the world in the year that began Oct 1, the US Department of Agriculture said this month. The country's total demand has soared 35-fold since 1997 as the economy boomed. As of Sept 17, US sales to the Asian nation in the 12 months ending Aug 31 were 55 percent behind the pace a year earlier, agency data showed.

"China's buying is a sign they like the price, and that's what is important," said Dale Durchholz, the senior market analyst at AgriVisor LLC in Bloomington, Illinois. "China's economy is still growing, albeit at slow pace, and the slow US sales pace to date should be seen as an opportunity."

Last year, members of the Chinese delegation agreed to buy 4.8 million tons valued at $2.3 billion from US shippers after a trade visit. China buys soybeans to make feed for livestock.

Thursday's soybean accord came during President Xi Jinping's first state visit to the US, underscoring the agricultural trading interests of the two nations.

China is the largest pork producer, and the US the top grower of the oilseed used to make animal feed.

On Thursday, soybean futures for November delivery rose 0.5 percent to close at $8.68 a bushel on the Chicago Board of Trade. The price has dropped 15 percent this year.