China Resumes Soybean Auctions Amid Continued U.S. Purchases

China has formally resumed its soybean procurement auctions in early January 2026, marking a strategic shift in its grain supply management amid fluctuating global markets. The auctions, conducted by state-owned enterprises, are aimed at stabilizing domestic feedstock availability and ensuring adequate protein supply for the livestock sector during the peak winter season. The latest auction round saw the allocation of 650,000 metric tons of soybeans, primarily sourced from the United States. This follows a confirmed transaction of 1.82 million metric tons of U.S. soybeans delivered between December 2025 and January 2026, according to trade monitoring data. The volume represents a 31% increase compared to the same period in 2025, reflecting growing reliance on American supplies despite ongoing trade tensions. Market analysts note that the auction mechanism allows China to control import timing and pricing without disrupting private trade. By acting as a bulk buyer, the government can absorb excess supply in the international market and reduce volatility in domestic prices. The resumed activity also signals renewed confidence in U.S. agricultural exports, particularly given the 2025-2026 harvest cycle improvements in Iowa, Illinois, and Indiana. The move impacts both U.S. farmers and Chinese feed manufacturers. U.S. exporters are reporting stronger demand, with the Chicago Board of Trade soybean futures contract rising 4.2% in January. Meanwhile, Chinese feed mills are securing long-term contracts at average prices of $478 per metric ton, down 8% from peak levels in late 2024.