CHICAGO, Nov 15: China, in an attempt to dim the harsh spotlight on its huge trade surplus with the United States, will trumpet its hefty purchases of US soyabeans at an industry meeting in Chicago next week, traders said on Friday.

They said a 30-member delegation from the world’s top soy buyer accounting for nearly one-third of global imports, will also sign agreements with U.S. companies at the gathering next Friday to highlight their dominant role in the US soy market.

Steve Censky, chief executive of the American Soyabean Association which is hosting the event, said he was uncertain if any purchase agreements would be signed.

But a grain trader whose company would be among other trading firms attending the gathering said Chinese private sector executives would indeed sign purchase agreements.

They will be signing some agreements with us on existing contracts to show how (many) beans they are buying from the US, he said.

He declined to reveal the value of the contracts, but added that China was concerned with criticism over its trade surplus with the United States, projected at $120 billion this year.

A grain industry source said the Chinese delegation was not expected to ink any wheat purchase deals since its members, including those from COFCO, were from the soy sector.

China on Wednesday confirmed market talk it would buy wheat from the United States but has been tight lipped on the amount and timing of the purchases.

Chinese demand for US soyabeans since this year’s marketing season began on Sept. 1 has been red hot. China purchased 6.35 million tons up to Nov. 6, compared with 2.66 million tons in the corresponding period of the 2002 season.

A weekly report from the US Agriculture Department issued on Friday stated that China bought 406,000 tons of soyabeans from the United States last week alone.

China’s voracious buying coupled with the smallest US crop in seven years have pushed prices to seven-year highs. The country is projected to import a record 22 million tons in the 2003/04 season ending Aug. 31.

Censky said National Cereals, Oils and Foodstuffs Import & Export Corp. (COFCO) and private sector soy processors will attend the Chicago meeting. State-owned grain trader COFCO is one of two agencies authorized to export corn from China.

They are very sensitive to the trade imbalance and want to come over and highlight what a major purchaser (of soyabeans) they are, being the largest export market for US soyabeans. said an industry source familar with the Chicago meeting.

Chinese Premier Wen Jiabao will visit the United States early next month and sign deals in Washington to buy five 737 aircraft from Boeing Co, Boeing and General Electric Co this week announced deals to sell China a total of 30 737’s and up to $3 billion worth of jet engines over 20 years.

Censky said the meeting will also raise concerns over China’s recent attempts to slow soyabean imports from the United States in a bid to keep domestic prices stable.

There have indeed been some problems in the trade due to a lack of transparency and some management of trade issues that we hope don’t occur again in the future, he added.—Reuters