Chinese soy imports up 71% YoY in June, with most of it sourced from Brazil

In June, Chinese soy imports were at a record high, up 71% year-on-year, according to Chinese customs data released on July 14. The biggest origin of growth are shipments sourced from Brazil.

China, which is the largest global importer of the oilseed, imported 11.16 million tonnes in June, compared to 6.51 million in the same period last year. In addition, there was a 19% increase compared to the 9.38 million tonnes imported in May, according to figures from the General Administration of Customs.

According to the analyst at the agricultural consultancy Cofeed, Xie Hullian, Brazil was the country that most exported soybeans to China in this period for several reasons: “The main reason is that Brazilian grains were cheap and the processing margins in June were really good, so processors scheduled a lot of loads,” he said.  According to industry analysts, Chinese soy processors, who earlier this year had to stop operations due to a lack of grain supply, are now suffering from excess stocks.

Still, Chinese soy imports this month are expected to remain above normal levels, meaning above 9 million tonnes.  “Imports in July are expected to reach 10 million tonnes, with most of the shipments coming from Brazil,” said analyst Monica Tu of Shanghai JC Intelligence.

Source: Reuters

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