China may increase imports of Brazilian soybean in the period from September to December this year. It is noted that starting in the fall, the supply of the oilseed from the South American region traditionally goes down and consumers from the Middle Kingdom switch to buying soybeans from the United States, reports Reuters.
“However, thanks to a record harvest in Brazil, the world market is expected to have a high supply of oilseeds at the end of this year, which will reduce the concerns of market operators about the prospects of reduced gross harvest in the United States and low production in Argentina,” the report said.
Recall that the soybean yield in Brazil amounted to 155.7 million tons, due to which importers from China are actively entering into contracts for the supply of raw materials at competitive prices. For example, the cost of Brazilian oilseed on the basis of C&F China with delivery in October is $576 per ton against more than $580 per ton with shipment from the United States.
“At the same time, buyers are usually willing to pay a premium of $12-15 per ton for Brazilian soybeans, which have a higher protein content compared to oilseeds from the U.S.,” market participants explained.
According to national statistics, last month China imported 10.27 million tons of soybeans (+24.5% for the year), the main volumes of this crop came from Brazil.