According to three U.S. sources, China is preparing to purchase 30 million tonnes of U.S. crops for stockpiling to help protect itself from supply chain disruptions due to the coronavirus pandemic.
The potential move is also in line with its pledges on buying more U.S. crops.
According to two sources briefed on the Chinese government’s plan, China plans on adding nearly 10 million tonnes of soybeans, 20 million tonnes of corn, and 1 million tonnes of cotton to its state reserves.
“The main message from (Beijing) is to secure people’s livelihood. It is a good time to build up reserves, especially when prices of the goods are at quite low levels,” said a source.