BEIJING: China imported 10.27 million metric tons of soybeans in June, up 24.5% from a year earlier, customs data showed on Thursday, as large purchases of cheap Brazilian beans reached the market.
imports by the world’s top soybean buyer were significantly lower than the record 12.02 million tons in May, when delayed cargoes from the prior month pushed up the number.
The imports were still relatively high, though, and in line with expectations.
Large recent arrivals have as well pushed shipments for the first six months of the year to 52.58 million metric tons, up 13.6% year-on-year, the General Administration of Customs data showed.
The surge comes after buyers in the world’s top soybean consumer bought up cheap supplies from Brazil, which produced a record crop this year.
Buyers had expected rising demand from farmers this year after China reopened after abandoning its strict anti-COVID measures. Hog farmers have lost money since the start of the year, however.
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Another 10 million to 11 million metric tons of soybeans are expected to arrive this month, traders said, but demand may slow in the second half of the year if hog herds start to shrink and less soymeal is needed, said Darin Friedrichs, co-founder of Shanghai-based Sitonia Consulting.
Soybeans are crushed into protein-rich meal to feed China’s livestock herds and make oil for cooking.
“Hog farmers have basically been losing money for over six months now. It’s hard to see how that continues indefinitely,” Friedrichs said.
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