21 March 2022

1 minute read

Asia

China's soybean imports from Brazil in the first two months of 2022 rose significantly from the corresponding period last year, customs data showed on Sunday.

The world's top buyer of soybeans, China brought in 3.51 million tonnes of the oilseed from Brazil, up 241% from 1.03 million tonnes in the previous year, data from the General Administration of Customs showed.

Rains in Brazil last year delayed the harvest and exports from the South American country, China's top soybean supplier, reported Reuters.

This year, drought slowed the harvest and shipments in Brazil, tightening soybean supplies in China, forcing many crushers to shut operations and pushing meal prices to record highs.

Soybean arrivals were still larger than the previous year, however, the data showed.

China also brought in 10.04 million tonnes of soybean from the United States in the first two months, down 16% from 11.9 million tonnes a year ago, according to customs data.

Early in 2021, it stepped up purchases of US farm goods to fulfil its commitment in the initial trade deal the two countries signed in January 2020.

Crushers did not book large volumes of US soybeans late last year as they waited for cheaper and earlier Brazilian beans. 

The drought in South America has pushed up premiums on shipments from the region, however, prompting Chinese buyers to turn to US cargoes.

Source: Reuters