China will soon announce the first purchases of U.S. soybeans under an agreement between the U.S. and China at the G20 Summit. Following the conversation, President Trump announced the purchases as the two nations enter trade talks.

Bloomberg News reports China plans to announce the purchases this month, which will be destined for state reserves. The final decision will be made by the State Council or cabinet, and details to be decided include whether the volume should be five million tons or eight million tons and if commercial companies should buy a further two million tons and be reimbursed for the 25 percent tariffs.

Resuming purchases of U.S. soybeans should help offset some trade-related economic downfalls for U.S. farmers, as China is the world’s biggest consumer of soybeans, but stopped U.S. purchases after implanting tariffs against the United States.

Source;  NAFB News