The U.S. agricultural sector seems to be once again set on an upward trajectory, with China’s total purchases of U.S. soybeans (since early October) having touched just over 1 million tons (as per an updated Nov. 18, 2025, press release by Bloomberg). This impressive business data comes on the heels of a new trade truce, signed by Trump and his Chinese counterpart last month, reversing a challenging period for U.S. agricultural exporters. 

Indeed, the sector has been under immense pressure over the past couple of years, and this intensified in April 2025 after the Chinese government sharply increased tariffs on U.S. soybean imports at the border. The latest purchase data thus reignites growth optimism for the U.S. agricultural companies and, by extension, agricultural exchange-traded funds (ETFs), particularly those providing exposure to soybean companies. 

Now, one might ask why China is so important for U.S. farms and how relevant the recent data is for American farmers’ growth in the coming years. Let us explain that briefly before diving into the soybean-focused agricultural ETFs you may keep on your watchlist.

U.S. Agricultural Sector’s Dependence on China 

For many years, China has been buying tens of billions of dollars’ worth of U.S. farm goods and has served as the largest buyer of American soybeans. However, a reversal in this trend has been noticed over the past decade. While the volatile trade relationship between the world’s two largest economies has been fueling this reversal, competitive pricing also played its role. 

As a result, China has recently been reducing its reliance on the United States, turning increasingly to Brazil, Argentina, and other alternative suppliers. So, America has been suffering from an agricultural trade deficit for quite some time now, which increased to an enormous level in 2025, on account of the deteriorating U.S.-China trade relations.

According to a report by the American Farm Bureau Federation, published in June 2025, the U.S. agricultural trade deficit amounted to $19.7 billion from January through April, reflecting the largest ever deficit recorded for the first four months of a year. 

Undoubtedly, the U.S. soybean industry has borne the largest brunt of this trade deficit due to its heavy dependence on Beijing, with exports to China exceeding $24 billion in 2024 (as per a report by the Center for Strategic & International Studies). But after China raised tariffs on U.S. soybeans to 34% in April 2025, its imports dropped to virtually zero until the trade truce was signed in late October. 

These data indicate that the financial health of the American farm belt remains deeply intertwined with demand from China, even as U.S. agricultural exporters try their best to find other buyers.

Relevance of the Recent Data

The resumption of large-scale Chinese buying, reflected in the recent purchase data, provides a vital recovery opportunity for the entire U.S. agricultural sector. The data also implied China’s biggest daily purchase of American soybeans in two years, reigniting further optimism for the sector and companies trading in it. 
Bloomberg also reported that state-owned agriculture trader Cofco Group booked nearly 20 cargoes of the American oilseed on Nov. 17, 2025, for delivery in December and January. Collectively, these data improve the revenue-generation outlook for U.S. farms, supporting renewed investor interest in American agricultural ETFs.

Looking ahead, the U.S.-China trade truce includes a commitment from China to purchase at least 25 million metric tons of U.S. soybeans annually through 2028. While few analysts have expressed concern that volumes may never return to pre-tariff highs, they agree that this guaranteed volume provides essential stability, serving as a significant tailwind for the entire agricultural ecosystem.

Agricultural ETFs to Watch

The improving trade outlook, exemplified by the purchase of nearly 1 million tons of soybeans, suggests that agricultural equities are poised for a gradual recovery. This sets the stage to keep your focus on the following ETFs, which can benefit from the recent positive trade momentum.

Invesco Agriculture Commodity Strategy No K-1 ETF (PDBA Quick QuotePDBA - Free Report)

This fund, with net asset value of $34.69 per share, is an actively managed ETF that invests in commodities futures, providing exposure to 11 agricultural commodities across grains, livestock, and soft commodities, such as coffee, sugar and cocoa. Its top three holdings include CBOT Corn Future (13.59%) and CBOT Soybean Future (12.53%).

PDBA has lost 2.1% year to date. The fund charges 75 basis points (bps) as fees. 

Teucrium Soybean ETF (SOYB Quick QuoteSOYB - Free Report)

This fund, with total net assets worth $51.74 million, seeks to capture the broader dynamics of the soybean market.

SOYB has gained 9.3% year to date and risen 2.2% since Oct. 30, 2025. The fund charges 83 bps as fees. 

Teucrium Agricultural Strategy No K-1 ETF (TILL Quick QuoteTILL - Free Report)

This fund, with net assets worth $5.56 million, is an actively managed ETF that invests in futures contracts of agricultural commodities, including corn, wheat, soybeans and sugar. Its top three holdings include Soybean Future (25.15%) and Corn Future (24.54%). 

TILL has lost 4.3% year to date, but risen 1.4% since Oct. 30, 2025. The fund charges 89 bps as fees.