RIO DE JANEIRO, BRAZIL – China’s imports of soybeans from Brazil retreated in June compared with the same period a year earlier, the Asian country’s customs data showed Tuesday (20), as weak crush margins weighed on demand.
China, the world’s largest buyer of soybeans, imported 10.48 million tons of the oilseed from Brazil – the top global exporter – last month, down slightly from a record 10.51 million tons in the same month of 2020, according to the customs data.
The figures still represent a 14% increase from the 9.23 million tons in May. As demand continues to be sustained by the recovery of China’s swine herd, the General Administration of Customs indicated.
However, reduced crushing margins have affected some of the demand in the world’s main soybean market. Chinese processors import soybeans to turn them into soybean meal, used as animal feed, and soybean oil for cooking.
The appetite for the oilseed has not been as great as expected, as falling margins in the swine industry have squeezed demand for soybean meal, the main source of protein in animal feed.
China, meanwhile, also imported 54,806 tons of soybeans from the United States – its second-largest supplier – in June, down 80% from the 267,553 tons purchased in the same period last year.