China soybean imports: Brazil down, U.S. up

China soybean imports from Brazil decreased in May, but shipments from the United States increased dramatically, according to customs statistics issued on Monday, as high prices hampered demand for South American cargo.

The world’s biggest soybean buyer imported 7.79 million tonnes of the oilseed from Brazil in May, up from 9.23 million tonnes a year earlier, data from the General Administration of Customs showed.

See below how soybean shipments behaved in the first four months of the years 2019, 2020, 2021, and 2022. These data are from Datamar’s DataLiner platform.

Soybean Exports from Brazil | Jan – Apr | 2019 – 2022 | WTMT

Source: DataLiner (click here to request a demo) 

According to customs data, the cargo brought in from the United States in May reached 1.73 million tonnes, up from 244,431 tonnes a year earlier.

Chinese buyers have turned to US soybeans for better profits during the peak of the Brazilian soybean export season, as bad weather has pushed up oilseed prices in the South American country. In the first five months of the year, China brought in 20.47 million tonnes of Brazilian soybeans, compared to 15.66 million tonnes in the same period last year.

China soybean imports from the United States reached 16.77 million tonnes from January to May, up from 21.51 million tonnes a year earlier.

Low crushing margins have weighed on crushers’ appetite for soybeans recently. Crushers in Rizhao lost about 172 yuan ($25.75) for every tonne of soybeans processed.

Demand for soybean meal from the animal feed sector is sluggish as the agricultural industry has struggled to turn a profit.

Covid-19 restrictions also limited the movement of goods and people, disrupting regular feed trade and hurting business.

However, hog margins have improved over the past two months, returning to favorable terrain due to higher hog prices.

Given the expectation of higher hog prices, soymeal demand could increase and push crushing margins into positive territory in a few months after crushers work with their large soymeal stockpiles, traders say.

China now has an abundant supply of soybeans, with 9.67 million tonnes imported in May and an expected import of almost 9 million tonnes in June, resulting in substantial inventories of soybean meal.

Source: Money Times

To read the full original article, please go to: https://www.moneytimes.com.br/china-importa-menos-soja-do-brasil-em-maio-eleva-compras-dos-eua/

Sharing is caring!