In a potential turning point for U.S.-China agricultural trade, China has booked two cargoes of U.S. wheat, marking the first such purchases since October 2024. The decision comes on the heels of a meeting between President Donald Trump and President Xi Jinping in South Korea last week-an encounter that appears to have eased lingering trade tensions between the two global powers.

Traders confirmed that the deals, totaling approximately 120,000 metric tons, include one shipment of soft white wheat and one of spring wheat, both scheduled for December delivery. While U.S. wheat isn't currently the cheapest on the global market, the purchase is widely viewed as a political signal rather than a pricing decision.

"This is more about China showing commitment to buy U.S. grains," said a Singapore-based grains trader with direct knowledge of the transactions. "It's a diplomatic gesture wrapped in grain deals."

The development coincides with Beijing's announcement that it will eliminate a 15% tariff-initially imposed in March 2024-on selected U.S. agricultural goods, including wheat. The tariff rollback, effective November 10, is expected to improve the competitive position of U.S. exporters in the Chinese market.

In 2024, China imported 1.9 million tons of U.S. wheat, accounting for 17% of its total wheat imports. However, amid trade frictions and robust domestic harvests, Chinese wheat imports plunged 72% year-over-year from January to September 2025. This purchase could mark the beginning of a modest recovery in U.S. wheat export volumes to China, which remains the top market for U.S. growers.

Adding to the positive signals, a U.S. sorghum shipment has also departed for China since the Trump-Xi meeting, according to Mark Wilson, chairman of the U.S. Grains and BioProducts Council. The U.S. shipped 5.7 million tons of sorghum to China in 2024, covering 66% of China's total sorghum imports.

For U.S. wheat producers grappling with depressed grain markets, global oversupply, and elevated input costs, a renewed relationship with China offers hope. The country's grain purchases often reflect both market needs and geopolitical dynamics, and this latest move could restore some predictability to an export landscape shaken by tariffs and trade disruptions.

Still, traders remain cautious. With alternative global suppliers and ongoing political complexity, it remains unclear whether this marks a long-term trade reset or a temporary show of goodwill.