China’s november soybean imports drop on logistics hurdles

China’s November imports of soybeans fell 14% on the year to 7.35 million tonnes, customs data showed on December 7, as logistics woes in top supplier the United States helped confound expectations for a significant rise.

After slower loading of shipments and longer customs clearance time, the smaller-than-expected number followed October’s plunge in arrivals to just 4.1 million tonnes, the lowest level since 2014.

Several market participants had expected arrivals of more than 9 million tonnes last month.

“December should be higher,” said a Beijing-based soybean trader, while another estimated December arrivals would exceed 10 million tonnes.

Stringent COVID-19 curbs in the world’s top buyer of soybeans probably slowed customs clearance, said one analyst, who sought anonymity because discussions of government policy are a sensitive topic.

But it had also cut back on purchases earlier in the year, after global prices soared and domestic needs contracted, following heavy losses suffered by hog farmers.

China buys soybeans to crush into soymeal for animals and oil for cooking.

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)

After hog-raising profits recovered, buyers stepped up purchasing again but some cargoes were delayed by logistics issues in top supplier the United States.

Water levels on the Mississippi River dropped to historic lows this autumn, at times halting barge shipments of grain on the major shipping waterway.

Crushing margins in China have slumped in recent weeks, however, on high global prices and falling demand for soymeal.

“Most buyers have covered enough beans before the holiday and are just waiting,” said the first trader, referring to the Lunar New Year next month, the year’s biggest holiday.

Imports in the first 11 months of the year were down 8.1% at 80.53 million tonnes, the data from the General Administration of Customs showed.

Source: Forbes

To read the full original article, please go to: https://forbes.com.br/forbesagro/2022/12/importacoes-de-soja-pela-china-caem-em-novembro/

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