China’s soybean imports from Brazil hit record in June

BEIJING (Reuters) – China’s soybean imports in June from top supplier Brazil soared to a record high, according to customs data released Sunday, fueled by rising demand for soybeans as China’s herd of pigs recovers after fatal outbreaks of African swine fever.

The world’s main soybean buyer brought 10.51 million tons of oilseeds from the South American country in June, 91% more than the 5.5 million tons the previous year, according to data from the General Administration of Customs. June figures also increased 18.6% from May imports from Brazil to 8.86 million tonnes.

Total soybean imports from China in June were a record 11.16 million tonnes, as Chinese processors also took advantage of lower Brazilian prices as better weather eased exports.

China brought 267,553 tons of soybeans from the United States in June, 56.5% less than the 614,805 tons the previous year. Imports fell 45.6% from 491,697 t in May.

China has stepped up purchases of US agricultural products, including soybeans, and will have to drastically increase purchases to deliver on its promise under a phase 1 trade deal that the two sides signed in January.

Some Chinese crushers in the south were struggling with bulky inventories due to the arrival of beans, while heavy rains and flooding in recent weeks have slowed demand in the livestock sector.

According to importers, crushing plants in the north are improving thanks to demand from the recovering pig herd.

Inventories are expected to remain high in the coming months as shipments from Brazil remain large.

China’s weekly national soybean inventories reached 7.39 million tonnes on July 21, their highest level since November 2018, and more than double a record low in late March, when soybean arrivals from Brazil fell after bad weather slowed exports.

National soybean meal stocks also increased to more than 1 million tonnes earlier this month, against a record low of 139,000 tonnes in April.