China last month reduced the purchase of soybeans from Brazil immediately by 16% – from 6.3 million tons (April 2022) to 5.3 million tons. This is reported by Reuters, citing data from the General Administration of Customs of China.
As noted in the materials, the decline in imports of oilseeds in China was due to delays in the harvest campaign in Brazil. Another factor – increased Chinese inspections of soybeans entering the country in April.
During the first four months of 2023 imports of Brazilian beans in China still lag 28% behind the previous year – 9.21 million tons against 12.7 million tons (January through April 2022) respectively.
At the same time, demand for American soybeans in China increased by 11% in April – up to 1.82 million tons. Since the beginning of the year, oilseed imports from the U.S. have already increased to 18.24 million tons from 15 million tons in January-April 2022.
Chinese buyers typically buy about 95-100 million tons of soybeans annually and process most of the raw material into feed, which is then used mainly in the pork industry. In addition, another 20 million tons are produced domestically.
The country is now seeking to reduce its dependence on imports of oilseeds. Chinese farmers are gradually increasing the area under soybeans and other oilseeds, but according to industry experts, the demand for beans in China in the coming years will still be at a high level.