China’s soybean imports to recover on improved margins

China’s soybean imports are expected to recover in 2023 amid improved margins, rising demand in the animal feed sector, and a need to replenish state reserves, analysts told S&P Global Commodity Insights. The rising COVID-19 cases in the country and the government’s approach to tackling the pandemic will introduce an element of uncertainty to this scenario, the analysts added.

China’s imports of soybeans are forecast to grow 8.3% year on year to 98 million mt in the calendar year 2023, according to a survey of market participants at over 10 major tradings, crushing, and brokerage companies by S&P Global. This comes after a year of weak demand due to poor crush margins and weak domestic consumption.

See below the volume of soybeans (hs 1201) exported from Brazil to China between Jan 2019 and Oct 2022, according to the DataLiner market intelligence service by Datamar.

Brazilian soy exports to China | Jan 2019 – Oct 2022 | WTMT

Source: DataLiner (click here to request a demo)

Industry sources estimated that there will be a need to replenish stocks by as much as 7 million mt in 2023 after multiple rounds of soybean auctions held by the state reserve in 2022.

Source: Canal Rural

Sharing is caring!