China intensifies imports of grains and oilseeds amid lower world prices

In May 2023, China sharply increased the grain imports amid the significant decline in prices for Brazilian soybeans and reduction of its own wheat harvest due to floods.

According to the State Customs of China, in May soybean imports from Brazil increased by 40% from 7.79 mln tonnes to 10.94 mln tonnes compared to the same period last year. The total imports of soybeans for 5 months of 2023 amounted to 20.15 mln tonnes, which is almost equal to last year’s figure of 20.47 mln tonnes. Chinese buyers took advantage of a significant soybean crop in Brazil and low prices for it to increase imports in the beginning of the year. After the delay in harvesting in Brazil and logistical problems during shipment to the ports of China in may received a record (for the month) the amount of soybeans – 12 million tons.

In May, the US soybean imports decreased by 47% to 923.5 thsd tonnes compared to last year, but in total in 2023 amounted to 19.16 mln tonnes, which is significantly higher than 16.77 mln tonnes in the previous season.

At the same time, in May, the imports of corn decreased by 20% to 1.66 mln tonnes compared to last year, including 865.88 thsd tonnes from Ukraine (126.7 thsd tonnes in May 2022) and 568.434 thsd tonnes from the US (1.9 mln tonnes in May 2022). In general, China imported 10.2 mln tonnes of corn in 2023, down 10.6% compared to the previous season. In July-August, corn supplies will increase due to the new corn crop from Brazil, which will be priced lower than the U.S. corn.

Imports of wheat to China in May increased compared to May 2022 by 71.5% to 1.2 million tons, and in total in 2023 amounted to 7.2 million tons, which is 63% higher than last year’s purchases.

Barley imports in May increased by 59.7% to 1.28 mln tonnes, and totaled 3.97 mln tonnes in 2023, up 19.3% compared to last year.

Tags: China, corn, grain, barley, prices, soybean, wheat