June 11, 2022

China imports more soybeans in May as delayed cargoes arrive

Data from China's General Administration of Customs showed the country imported 20% more soybeans in May compared to April, as delayed cargoes arrived, Reuters reported.

The data showed China imported 9.67 million tonnes of soybeans in May, up from 8.08 million tonnes in April.

The May figures, which were slightly higher than the 9.61 million tonnes recorded a year ago, were above market expectations. In China, low crush margins have slowed demand for crushers.

Darin Friedrichs, co-founder of Shanghai-based consultancy Sitonia Consulting, said May imports were slightly higher than last year, but some of that increase is likely due to shipments that were delayed in unloading due to the COVID-19 situation and port congestion, and are now showing up in the data.

He also said Brazil's soybean exports have dropped significantly in the last two months, but the drop is too recent to be reflected in this month's import data.

China's soybean imports were 38.04 million tonnes in January-May, down 0.4% year-on-year, according to customs data, as high soybean costs and flat demand from the feed sector stifled crushers' appetite.

Soybean arrivals were lower earlier this year as bad weather in Brazil, China's top supplier of the oilseed, delayed harvesting and exports, sending Chinese soymeal prices to new highs.

Imports increased later as delayed cargoes cleared customs, but demand remained flat as crush margins remained largely negative.

Zhu Rongping, an analyst with Mysteel, a China-based consultancy, said soybean meal inventories at crushing plants continued to rise as large volumes of soybeans arrived. End-user demand remained flat, putting downward pressure on cash soymeal prices.

-      Reuters