June 9, 2023

Record 12.02 million tonnes of soybeans brought in by China in May

China imported a record 12.02 million tonnes of soybeans in May, up 24% on a year ago, Reuters calculations based on customs data showed, as cargoes delayed during last month's strict inspections were finally unloaded at ports.

The imports by the world's top soybean buyer were up from April's 7.26 million tonnes, which were far short of expected arrivals. The total for the first five months of the year reached 42.31 million tonnes, up 11.2% year-on-year, the General Administration of Customs said on June 7.

The previous record for a month was 11.2 million tonnes in June 2020.

Harvesting of the largest ever crop in China's top supplier Brazil was delayed this year, pushing back arrivals of soybean cargoes, while stricter customs procedures at Chinese ports further slowed imports last month. The delays led to low stocks of soybeans, driving up the price of soymeal.

Last month's large arrivals of beans have, however, brought down prices, with spot soymeal sold in crushing hub Rizhao down almost 20% during May to ¥3,670 (US$515.53)a tonne.

Arrivals in June could be even larger at around 13 million tonnes, said a Beijing-based soybean trader, based on the large shipments in April.

Low hog prices in China in recent months are however hurting demand for soymeal, as well as large volumes of cheap wheat that are increasingly available for feed producers.

- Reuters