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According to customs data released last Friday (26), China’s imports of soybeans from Brazil reached their highest level in two years in May, and China showed strong demand for Brazil’s record harvest this year
China, the world’s largest soybean importer, purchased 8.86 million tons of Brazilian soybeans last month, the largest volume since May 2018 and a 41% increase compared to the 6.3 million tons during the same period last year according to data from the General Administration of Customs.
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China’s soybean purchases from the United States in May totaled 491,697 tons, a decline of nearly 50% compared to May 2019, the lowest monthly amount since January of last year.
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Rain delayed Brazil’s soybean imports in late February, which severely affected the soybeans that arrived in China in March and April. As the weather improved, shipments from South American suppliers gradually increased, and now, they may reach their peak in China.
According to data from the Brazilian government, Brazil’s exports to all destinations reached a record 16.3 million tons of soybeans in April, and data indicate that another 15.5 million tons will be exported in May.
Now, as China tries to fulfill the agreement to increase the purchase of agricultural products under the Phase One trade deal with the United States, China is expected to turn to the United States. Beijing reiterated its commitment during negotiations this week in Hawaii.
Traditionally, the peak period for U.S. exports to China occurred in the last four months of the year, and last year, China historically completed over 40% of its annual purchases from the United States.
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