China’s soybean imports from U.S. in March surge by 320%, Brazilian imports plunge

RIO DE JANEIRO, BRAZIL – China’s soybean imports from Brazil retreated in March as rain delayed some shipments from the leading global exporter of the oilseed. Meanwhile, imports from the United States soared and increased more than fourfold as delayed shipments arrived, reaching the highest monthly total since December 2016.

China, the largest global importer of soybeans, bought 315,334 tons from Brazil in March, down 85% from 2.1 million tons in the same month a year earlier, according to data from the General Administration of Customs on Tuesday.

Imports from Brazil were the lowest since January 2017, according to Reuters records with the customs data. More than offsetting that pullback, China imported 7.18 million tons of U.S. soybeans in March, up 320% from 1.7 million tons in the same month a year earlier.

The data from Tuesday, April 20th, were the first with separation by origin of soybeans since China published earlier this month figures showing that soybean imports in March grew 82% to 7.7 million tons.

“Much of that seems to be due to delays that affected the timing of arrivals of U.S. shipments,” said Darin Friedrichs, analyst at StoneX. “Some of the shipments could have arrived earlier, but they weren’t actually unloaded until March.”

China has been increasing purchases of agricultural and other products from the U.S. after the two sides signed an initial trade agreement last January. But soybean buyers have turned more toward the U.S. than usual in 2021 as rains in Brazil have delayed the harvest as well as exports.

Chinese processors import soybeans for crushing and producing soybean meal for feed and cooking.

They had increased purchases of soybeans on expectations of strong demand amid a recovery in China’s pig herd. But a severe wave of African swine fever cases in recent months has decimated at least 20% of the female herd in northern China by some estimates, reducing demand for soybean meal.

Increased use of wheat for feed has also held down demand for soybean meal, according to analysts and market players.

Source: CNN Brasil

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