Ahead of Chinese President Xi Jinping's scheduled visit to the United States next month, analysis suggests that China is accelerating the implementation of the US-China trade agreement by making massive purchases of US soybeans.

Citing traders, Reuters reported on the 3rd local time that Chinese state-owned trading companies purchased a total of about 1 million tons of US soybeans, spanning 14 to 16 bulk cargo ships, on July 31.

Based on reports from exporters, the US Department of Agriculture (USDA) also officially confirmed that China's purchase volume of US soybeans stood at around 500,000 tons as of the 3rd.

Because large-scale grain transactions are often reported in multiple batches or some shipments are classified as "unknown destinations," the figures from both sides do not match. However, both industry estimates and official government announcements are regarded as an unusually large purchase.

Multiple traders explained to Reuters that each cargo ship contracted on July 31 carries approximately 65,000 tons of soybeans, with most scheduled for shipment in October.

In the market, the recent decline in international soybean prices has created a favorable environment for bulk purchases. Another background cited for this massive purchase is the need to expedite the fulfillment of the US-China trade agreement ahead of President Xi's anticipated visit to the US in September.

As crop concerns eased due to rainfall forecasts in the US Midwest, November soybean futures traded on the Chicago Board of Trade fell 5.2% from about $12.53 per bushel (approx. 17,000 won) on July 24 to $11.875 (approx. 16,000 won) on the 31st.

One trader noted that the deal was led primarily by the Chinese state-owned enterprise Sinograin, stating, "Since President Xi's visit to the US is planned, they have stepped up soybean purchases in accordance with the trade agreement with the US."

President Xi is reportedly scheduled to visit the US next month to hold a summit with US President Donald Trump.

If the summit takes place, it will be their first face-to-face meeting in about four months since the US-China summit held in Beijing last May, during which both countries agreed to ease trade tensions and expand purchases of US agricultural products.

Following the US-China summit held in Busan last October, the US White House announced that China had agreed to purchase 25 million tons of US soybeans annually by the end of 2028, but the Chinese side has never disclosed soybean-related agreement details, including annual purchase targets.

As of the first half of this year, China's import volume of US soybeans remains well below half of the target mentioned by the White House.

Citing announcements from China's General Administration of Customs, the South China Morning Post reported that China's imports of US soybeans from January to June dropped 42.4% year-on-year to 9.31 million tons.

Conversely, imports of Brazilian soybeans during the same period rose 9.1% year-on-year to 43.75 million tons.

In June alone, imports reached a monthly record high of 13.55 million tons.

Market watchers are paying close attention to whether China will eliminate tariffs currently imposed on US soybeans.

This is because lifting the tariffs could prompt not only state-owned enterprises but also private soybean processors to actively buy US soybeans.

However, Reuters projected that even if the tariffs are removed, the purchase scale could remain limited if US soybeans lack sufficient price competitiveness.