The long-frozen trade in soybeans between the United States and China is poised to restart, after Beijing agreed to purchase 12mn tonnes this season and 25mn tonnes annually over the next three years, under a broader trade understanding, The Times of India reports.

According to Scott Bessent, US Treasury Secretary, the agreement marks a significant step towards restoring normalcy for American farmers.

The Times of India adds that the deal follows months of disruption, during which Chinese purchases of US soybeans fell sharply amid tariff tensions with Washington. China’s annual purchases had averaged 28.8mn tonnes from September to August over the past five crop years.

Bessent also indicated that other Southeast Asian nations had committed to acquiring an additional 19mn tonnes of US-produced soybeans, although he did not specify a timeframe or identify which countries were involved.

The initial sale to China amounts to about three cargoes, approximately 180 000 tonnes, secured by state-trader COFCO just before a summit between US President Donald Trump and Chinese President Xi Jinping in South Korea on October 30.

Market reaction was reported as being immediate: the most-active soybean contract on the Chicago Board of Trade reversed earlier losses and closed 1.2% higher, at a 15-month peak of $11.07¾ per bushel. Export prices for US soybeans have surged by $20 to $30 per tonne this week, driven by expectations of renewed Chinese demand.