by PressChina increases soybean imports to replenish stocks
Soybean imports in China rose 12%
Soybean imports to China increased in Q3 2022, amounting to 7.7 million tons. Compared to the previous 30 days, growth was observed at the level of 12%. The main factor for the increase in supplies was an increase in demand for soybean meal, which is a component of the production of feed in the livestock sector.
The main supplier of the oilseed crop is the United States. American farmers shipped 1.15 million tons of beans to China in September 2022. By comparison, the U.S. exported 169,439 tons during the same period last year. As for shipments from Brazil, they dropped to 5.6 million tons, down from 5.9 million tons in 2021.
The current season has not been a good one for Brazilian soybean producers. Poor weather conditions have significantly reduced the crop and exports from the country have been reduced. This has caused concern in the world market and prices for oilseeds went up. In June they reached the highest levels in 10 years. For a long time, Brazil remained the main supplier of soybeans to China.
Rising bean prices have led to a decrease in profits from its processed products, which are used as animal feed. In addition, since the beginning of the year, there has been a decrease in demand for China’s livestock sector. A combination of these factors led to a drop in the country’s soybean imports. However, last month China bought more oilseeds than in the previous period when supplies amounted to 7.17 million tons. During the same month in 2021, imports were at 6.88 million tons.
It should be noted that the volume of soybean purchases from China exceeded analysts’ expectations. This trend is due to the need to replenish stocks. In addition, pig farming has seen an increase in profits since the summer, which stimulates demand for soybean meal, which is used as a component of animal feed. On the background of lack of supply, the price for oilseed crops started actively growing and many traders decided to urgently replenish stocks.
Chinese imports for the three quarters of this year totaled just over 69 million tons, which was 6.6% less than the nine-month results in 2021.
Although China increased soybean imports from the U.S. last month, purchases from U.S. farmers are becoming more expensive. The reason for this is the strengthening of the dollar. However, given the poor soybean crop in Brazil and a number of other producers, we can say that the price of the oilseed will keep rising.