January 15, 2020

China's December imports for soybean increase 67%

Customs data showed China's soybean imports rose 67% compared to one year ago, reaching a 19-month high as cargoes from the United States and Brazil have cleared customs, reported Reuters.

9.54 million tonnes of soybean have been imported into China, the biggest market for soybeans in the world. According General Administration of Customs data, this is 5.72 million tonnes higher compared to one year earlier.

Shipments were higher too, reaching 8.28 million tonnes in November, a 15% increase.

Monica Tu, Shanghai JC Intelligence analyst said the numbers were high as many delayed soybean cargoes have finally cleared customs.

88.51 million tonnes of soybean was imported for the whole year, higher than the 88.03 million tonnes reported in 2018 when higher tariffs were imposed on soybean shipments imported from the United States.

Amid easing US-China tensions, China's soybean purchasers have booked several rounds of US soybean cargoes after they were issued with tariff-free waivers recently. Additionally, Brazilian soybeans good prices and trade uncertainty between the US-China also persuaded buyers to increase purchases from Brazil.

Zou Zhiwu, China customs vice minister said imports of soybean and pork have rebounded in December last year.

China's demand for soybeans are expected to rise as the country recovers its swine production, which was affected by the African swine fever outbreak in the country.

-      Reuters