China: Soybean imports set record in September, demonstrating potential of trade diversification

China’s soybean imports hit a record high for the month of September, with the country receiving 12.9 million tons of soybeans, data from the General Administration of Customs (GAC) showed on Monday.

A Chinese analyst said that the robust performance came as demand from China remained persistent and soybean suppliers such as Brazil ramped up supplies amid heightened trade tensions between China and the US, which has been traditionally a key import source.

Total imports for the first nine months of the year stood at 86.18 million tons, up 5.3 percent year-on-year, according to the data. September shipments were near the highest ever monthly level, which was recorded in May, according to Bloomberg.

The trade data in September also highlighted the strengthening trade ties between China and Latin American countries amid global trade challenges and tariff pressures, according to an industry source.

Chinese companies have been ramping up purchases of soybeans as they navigate the impact of heightened trade tensions between China and the US with a diversification strategy, Ma Wenfeng, a senior analyst at the Beijing Orient Agribusiness Consultancy, told the Global Times on Monday.

“However, the robust supply has shown that Latin American countries have great potential in supplying soybeans to China. It is estimated that Brazil alone can supply over 100 million tons of soybeans to overseas buyers, as the country has great conditions for soybean production and has been ramping up output in recent years,” Ma said.

Brazil’s soybean production is projected to reach 169.5 million tons for the 2024-25 crop year, an annual increase of 14.2 percent, the People’s Daily reported on July 30, citing Brazilian industry sources.

From January to October, Brazil is expected to export about 102 million metric tons of soybeans, exceeding the record of 101 million set in 2023, according to data released by the Brazilian National Association of Grain Exporters (ANEC) on October 8.

The ANEC figures showed that China remains Brazil’s largest soybean export destination. As of now, over 79 percent of the country’s soybeans have come to China.

China’s continuous opening-up continues to bring growth opportunities amid China’s modernization with more and more trading partners. In the first three quarters, China approved the import of 135 new types of agricultural and food products, involving 50 countries and regions, GAC spokesperson Lü Daliang said on Monday.

On September 25,Ministry of Commerce (MOFCOM) spokesperson He Yadong stressed the importance of subnational economic and trade cooperation to bilateral trade relations, urging the US to eliminate unwarranted tariffs to facilitate bilateral trade.

He made the remarks at a regular press conference when asked to brief the details of a meeting between Li Chenggang, China’s international trade representative with the MOFCOM and vice minister of commerce, with a delegation of political and business leaders from the US Midwest and about whether the meeting showed that China will buy soybeans from the region.

Subnational economic and trade cooperation is an indispensable part of China-US economic and trade ties, and an important platform and channel for strengthening bilateral economic and trade exchanges. On soybean trade, the US should take positive action to remove unreasonable tariffs, and create conditions for expanding bilateral trade, injecting more stability and certainty into the global economy, said He.

Tags: soybeans, Production, purchases, imports, demand, China, Brazil