Soybean imports from Brazil into China fell in May, while cargoes brought in from the United States rose sharply, customs data showed on Monday (20), as high prices reduced demand for South American cargo.
The world’s biggest soybean buyer imported 7.79 million tonnes of the oilseed from Brazil in May, up from 9.23 million tonnes a year earlier, data from the General Administration of Customs showed.
Cargo brought in from the United States in May reached 1.73 million tonnes, up from 244,431 tonnes a year earlier, according to customs data.
Chinese buyers have turned to US soybeans for better profits during the peak of the Brazilian soybean export season, as bad weather has pushed up oilseed prices in the South American country.
In the first five months of the year, China brought in 20.47 million tons of Brazilian soybeans, compared to 15.66 million tons in the same period last year.
Imports of the oilseed from the United States reached 16.77 million tonnes from January to May, up from 21.51 million tonnes a year earlier.
Low crushing margins have weighed on crushers’ appetite for soybeans in recent months. Crushers in Rizhao lost about 172 yuan ($25.75) for every ton of soybeans processed.
Demand for soybean meal from the feed sector is under pressure as the agricultural sector has struggled to turn a profit.
Covid-19 restrictions have also limited the movement of goods and people, disrupting normal feed trade and hurting business.
But hog margins have improved over the past two months, returning to positive terrain due to higher hog prices.
Given the expectation of higher hog prices, soymeal demand could increase and push crushing margins into positive territory in a few months after crushers work with their large soymeal stockpiles, traders say.
Currently, China has an ample supply of soybeans, with 9.67 million tons received in May and an expectation of almost 9 million tons in June, culminating in high inventories of soybean meal.
Source: CNN Brasil
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