China's imports of U.S. soybeans tripled in July compared to a year earlier as the U.S. growing season resumed. However, Brazilian supplies of the agricultural commodity still hold the lion's share of the market, according to data from the General Administration of Customs released on Tuesday (20).

The world's largest soybean buyer imported 475,392 tons of the oilseed from the United States last month. A year earlier, the Asian country had purchased 142,129 tons, according to the data.

Imports from Brazil, the world's largest soybean producer, fell 1.15% to 9.12 million tons. Even so, South American beans accounted for almost all of the 9.85 million tons of soybeans China imported in July.

In the accumulated seven months of 2024, China's purchases of Brazilian soybeans totaled 43.55 million tons. This is a 12% increase compared to the same period last year.

Meanwhile, total US arrivals to the East in the seven months of the year were 12.63 million tonnes. This represents a 25% drop compared to the previous year.

China’s crushers have stepped up purchases in recent months after lower global prices helped reduce import costs. This has led to excess inventories at a time when demand for animal feed remains weak.

In addition, the weak demand from China comes amid forecasts of a bumper US soybean crop and good growing conditions in the US Midwest. Hence why soybean prices are near four-year lows.

The United States Department of Agriculture (USDA) raised its estimate for the 2024/25 US soybean crop to a record 4.589 billion bushels, up from 4.469 billion previously.

Source: Forbes