China imports records volume of Brazilian soy in June

According to data from the Chinese customs service, China imported 10.5 million tonnes of soybeans from Brazil in June. The volume was a record for a single month. The share of Brazilian soybeans imported in the month represented 94% of all grain imports in June. Compared to the same month last year, the growth was 91%, and in relation to May this year, the increase was 19%.

With almost half of the next harvest sold, producers in Mato Grosso have already started selling the soybeans that will be harvested in 2022, as confirmed by the Mato Grosso Institute of Agricultural Economics (Imea). The precipitated buying is driven by the advantageous exchange rate and reflects the good moment that grain sales are experiencing in the state, which had a record harvest this year and prices above R$100 per bag available in July. In general, advance contracts are closed from December.

The following graph shows Brazilian soy exports in the first five months of 2019 and 2020:

Report sources: Reuters and Valor Econômico

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