Image: Pixabay
China imported a record 12.02 million metric tons of soybeans in May, an increase of 24% from a year earlier, customs data showed, as cargoes delayed during recent strict inspections were finally unloaded at ports.
Imports from the world's largest soybean buyer rose sharply compared to April's volume of 7.26 million tons, which had fallen short of expectations.
{module Form RD}
The harvest in Brazil, China's main supplier, was slightly slower this year, delaying soybean cargo arrivals, while stricter customs procedures at Chinese ports significantly slowed imports in April.
In May, Brazilian soybean exports reached the second highest level in history, according to data from the Foreign Trade Secretariat, which could be reflected in large landings of the oilseed next month in China, considering the time for cargoes to arrive to the Asian country.
Import delays in April resulted in low soybean stocks in China, driving up the price of soybean meal.
Large grain arrivals in May, however, drove down prices, with soybean meal sold at the Rizhao crushing center down almost 20% in May to 3,670 yuan ($515.53) a tonne.
The previous monthly record for imports was 11.2 million metric tons, in June 2020.
Arrivals in June could be even higher, at around 13 million tonnes, a Beijing-based soybean trader said.
Chinese crushers bought cheap Brazilian soybeans at the beginning of the year, with the large harvest putting pressure on futures prices.
Low hog prices in China in recent months are, however, hurting demand for soybean meal, as well as large volumes of cheap wheat that are increasingly available to feed manufacturers.
Replacing wheat with corn in animal feed can reduce the demand for soybean meal, as it has a higher protein content than corn.
Total soybean arrivals in China in the first five months of the year reached 42.31 million metric tons, an increase of 11.2% from the previous year, data from the General Administration of Customs showed.
Source: Dominique Patton | Notícias Agrícolas
