China breaks record of 12.1 million tons of soybeans bought in August
China imported a record 12.14 million tons of soybeans in August, with traders taking advantage of lower prices to build up stockpiles amid concerns that trade tensions with the United States could intensify if Donald Trump returns to the presidency.
Last month's imports represented a 29 percent jump from 9.43 million tons a year ago, according to Reuters calculations based on customs data released on Tuesday.
“The increase stemmed from the fact that ships that had customs clearance delayed last month were finally cleared this month,” said Rosa Wang, an analyst at JCI, a Shanghai-based agro-consulting firm.
“Low soybean prices in Chicago have provided a good chance for large purchases in recent months, while some say buyers are preparing for any possible tariff hikes that Donald Trump might impose if he wins the US election,” Wang said.
Total soybean arrivals in the first eight months of the year were 70.48 million tons, an increase of 2.8 percent over the previous year, according to data from the General Administration of Customs.
The large volume of arrivals increases the oversupply of soybeans in the world's main buyer of the commodity, as the struggling local economy weakens consumption of meat and dairy products.
The large volume of arrivals increases the oversupply of soybeans in the world's main buyer of the commodity, as the struggling local economy weakens consumption of meat and dairy products.
Soybeans are crushed and turned into meal for animal feed and oil for cooking.
Domestic stocks of soybeans and soybean meal have fallen slightly, but remain high, according to agricultural consultancy MySteel.
Rising costs for imported soybeans pushed crushing margins in September in China's main processing center, Rizhao, to the highest since July, although crushers are still losing around 300 yuan (42.17 dollars) for each ton processed.
In Brazil, soybean producers may produce 14% more in the 2024/2025 season than in the previous one, according to a Reuters poll of 10 analysts and market institutions, as expectations of more rainfall in the last quarter of the year have increased.
Source: Forbes