China's soybean imports in May jumped 27.4% year-on-year as a large volume of shipments arrived from Brazil following an improvement in the South American country's weather.
China, the largest global importer of soybeans, imported 9.38 million tons of soybeans in May, compared to 7.36 million tons the previous year, according to data released on Sunday.
The data shows the biggest monthly increase since December and compares to 6.714 million tons imported in April.
Rains at the end of February delayed Brazil's harvest and exports, which impacted landings in March and April. Soybean and soybean sniff stocks in China have fallen to record lows, forcing some soybean processors to halt operations.
But shipments from Brazil increased as the weather improved, and Brazil's soybean exports in April reached a record 16.3 million tons, well above March's 11.64 million tons.
“Processing margins for Brazilian soybeans were looking good for May, so importers booked a lot of cargo,” said Xie Huilan, an analyst at agricultural consultancy Cofeed, before the data was released.
Market operators also expect massive soybean imports in June and July, above 9 million tons per month, a level above common levels.
China has also ordered some soybean shipments from the US this year to meet its commitments under Phase 1 of the countries' trade deal.
Source: agrolink
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