China decreases soybean imports from Brazil ahead of Trump-Xi meeting.

Chinese purchases of Brazilian soybeans have dropped significantly due to costly prices, which are squeezing the profits of the processors. This situation could raise concerns about potential supply shortages in the world’s biggest consumer if the slowdown continues.

Brazilian soybean trade transactions dropped to under five shipments in the past two weeks, averaging around 20 per week in August, as reported by traders with knowledge of the matter.

The processors risked damage while crushing the South American grains, according to traders who spoke on the condition of anonymity as they were not permitted to talk to the media.

Buyers are also looking for indications on bilateral trade at the summit between U.S. President Donald Trump and Chinese leader Xi Jinping.

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China’s private soy processors heavily depended on Brazilian soybeans following increased tensions between the world’s two largest economies last season, according to traders. However, the current rate of purchases might not meet the demand.

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The United States and China are in talks about lowering tariffs on certain items, such as American farm products. Traders are monitoring the potential removal of the extra 10% tariff on American soybeans during negotiations in Washington, which could increase the product’s appeal to Chinese buyers.

“In 2025, China had no choice but to keep purchasing from Brazil until the year’s end,” stated Raphael Mandarino, the director-general of AgResource Brazil.

Chinese state-owned companies have boosted their purchases of American soybeans, as Beijing aims to meet its commitment to buy a minimum of 25 million tons annually until 2028. Sales have surpassed half of this target in the recent weeks.

Brazilian soybean prices increase compared to those in the United States.

Movement suggests a reduced supply in the biggest supplier globally.

Private processors mostly steered clear of American soybeans because of steep tariffs, leading them to rely heavily on Brazil, the top global exporter. However, this option is becoming increasingly uneconomical.

Processors are expected to incur losses of around 150 yuan per ton for Brazilian soybeans shipped in November and 470 yuan for those shipped in December, as reported by the Mysteel consultancy.

Brazil no longer provides the cost benefit seen in recent American harvests, as stated by analysts from the Stag International brokerage in a report published on Tuesday.

Soybeans scheduled for shipment in November from the port of Paranaguá were sold at a price of $1.35 per bushel compared to Chicago futures contracts, making them pricier than American shipments from the Gulf of Mexico.

After the Latin American country sold a significant amount of large volumes when future Chicago contracts surged in August, the limited supply is now driving prices up. Around 91% of the previous harvest has already been sold, compared to an average of 88% over the past five years, as reported by AgRural. Farmers are holding onto the remaining stocks in hopes of better prices, according to consulting analyst Daniele Siqueira.

The American supply is growing as the new crop harvest begins, leading to an increase in U.S. market presence in the fourth quarter.

China and the United States have agreed to prolong the trade ceasefire for an additional two months, with US Treasury Secretary Scott Bessent expressing uncertainty about the possibility of reaching a more comprehensive agreement.

Mandarino stated that the Brazilian soybean prices for the previous harvest will be influenced not by current Chinese demand but by developments in Washington on Thursday and Friday.