October 24, 2019
China soybean imports ease in September following falling feed demand
China soybean imports fell 13.5% in September 2019 compared to August the same year as the African swine fever (ASF) epidemic in the country reduced soymeal demand for swine feed, reported Reuters.
According to data released by China’s General Administration of Customs, the country purchased 8.2 million tonnes of soybean in September, lower than August’s 9.48 million tonnes.
This is still bigger than 8.01 million tonnes in September 2018, as importers purchased more Brazil soybeans with fears of shortages amid the easing US-China trade war.
According to data published by China’s Ministry of Agriculture and Rural Affairs in early September, the country’s swine herd has dropped 38.7% in August 2019 compared to 2018. The industry believes actual numbers are much higher than official reports.
The US-China trade war, with a 25% tariff slapped on US products in July 2018 had restricted shipments of soybeans from what was China’s second largest supplier of soybeans. The tariff was made in response to US measures.
Monica Tu, analyst with consultancy Shanghai JC Intelligence said these numbers are anticipated. Soybean imports from South America rose in August with looming fears that the US-China trade negotiations may not go well.
The last few weeks have seen Chinese importers buy up to 600,000 tonnes of US soybeans in end-September, part of a tariff-free quote seen as a Chinese norm of ‘goodwill’ purchasing of US agricultural goods before the upcoming US-China trade talks.
Between January to September 2019, China purchased 64.511 million tonnes of soybeans, down 7.9% less soybeans compared to the same period last year.
US President Donald Trump said China arranged to buy US$40-50 billion in US agricultural goods as both countries have entered the first phase of an agreement to bring the trade war to an end.
- Reuters
