July 27, 2020

 

China's June soybean imports from Brazil hit record high

 

Data from China's General Administration of Customs showed China's June soybean imports from Brazil rose to a record high following higher demand for the oilseed due to China's steadily recovering swine herds, Reuters reported.

 

The data showed China purchased 10.51 million tonnes of soybean from Brazil in June, a 91% year-on-year increase compared to 5.5 million tonnes in June 2019. Last month, China purchased 8.86 million tonnes of Brazilian soybeans.

 

Overall China soybean imports hit 11.16 million tonnes, with Chinese processors reaping the benefits of reduced Brazilian prices plus better weather helped to boost exports.

 

China purchased 267,553 tonnes of soybeans from the United States in June 2020, a 56% decline compared to the 614,805 tonnes purchased on the same month last year. Imports declined 45.6% from 491,697 tonnes in May 2020.

 

While China has purchased more US agriculture, it needs to significantly boost its imports from the country to meet its pledge under the US - China Phase 1 trade deal signed in January.

 

Crushers in south China are overloaded with soybean inventories, while demand from the livestock farming industry has dropped because of heavy rains and flooding in the area over the last few weeks.

 

However, importers said in northern China, soybean crushing plants are thriving because of recovering swine herds. 

 

Soybean inventories are projected to remain high over the next few months with more arriving large Brazilian cargos.

 

The CFD-SBSTK-NATN, China's national weekly soybean inventories hit 7.39 million tonnes by July 21, the highest since November 2018 and more than double the reported numbers back in March when bad weather in Brazil reduced exports.

 

Over 1 million tonnes of national soybean stocks have been reported, higher than April's 139,000 tonnes which was a record low.

 

-      Reuters