China’s imports of U.S. soybeans nearly tripled in October, but China’s soybean imports are expected to slow sharply after months of surging growth due to rising U.S. soybean prices, which have caused a sharp drop in trade profits for Chinese operators.
According to data released by China Customs on the 25th, China’s imports of U.S. soybeans in October were almost three times the number of imports in the same period last year. China imported 3.4 million tons of soybeans from the U.S., an annual increase of 196%, and more than 4.23 million tons of soybeans from Brazil, an annual increase of 11.6%.
China is currently the world’s largest importer of soybeans, accounting for more than 60% of the global total. China accounts for more than half of the world’s soybean imports, mainly due to meeting its purchase commitments under the U.S.-China trade agreement and rebuilding hog inventories lost to African swine fever.
However, a Reuters report (Reuters 25) cited three trade sources as saying that small private soybean importers have seen their crushing costs exceed their profits due to a sudden and dramatic increase in U.S. soybean prices this month.
In response to the latest price changes, many soybean importers or processors have canceled their orders for shipments scheduled for December and January of next year. This is the first sign of a slowdown in demand after five months of sharp increases in soybean imports.
However, the report does not indicate the size of the cancelled orders.
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