China May soybean imports fall 11.6% on year
Rising hog prices support demand for soybeans
10 June 2024
2 minute read
By: China imported 10.22 million metric tons of soybeans in May, customs data showed on Friday, below the levels of a year ago but more than April's shipment volumes, as good crush margins supported demand for cheaper Brazilian beans, according to Reuters.
May imports by the world's largest buyer of the oilseed were down 11.6% from a record 11.56 million tons in May 2023, based on Reuters calculations from customs data, and fell short of expected arrivals of 11 million to 12 million tons.
Imports in the first five months of the year totalled 37.37 million tons, 5.4% lower than the year-ago period, data from the General Administration of Customs showed.
Rising hog prices in the world's largest pork market have supported demand for soybeans, which is crushed into soymeal for animal feed.
The imports are largely from top producer Brazil, which typically ships most of its soybean crop from March to June.
But floods have disrupted Brazil's harvest this season, lowering the state's production estimates and impacting delivery of freshly harvested soybeans to drying and storage units.
"Customs' soybean import data of 10.22 million metric tons is slightly below our estimate of 12 million metric tons as some ships may have arrived, but (have) yet to complete customs clearance," said Rosa Wang, analyst at Shanghai-based agro-consultancy JCI.
"We might see bigger arrivals in June import data, but considering the impact of the floods in Brazil, we anticipate a smaller figure of around 11 million metric tons for June."
In No. 3 producer Argentina, farmers are speeding up delayed sales of soybeans, the latest government data shows, helped by higher global prices and better weather conditions for the ongoing harvest.
China took delivery of 50,000 tons of deforestation and conversion-free (DCF) Brazilian soybeans on May 31 and is looking to source more sustainable products, marking what industry players say is a milestone for a country that has prioritised price over sustainability in its farm imports.
China's first food security law aimed at achieving "absolute self-sufficiency" in staple grains came into effect on Saturday, reinforcing efforts to lower its reliance on overseas purchases.
