China’s soybean imports fall to 10-year low

China’s soybean imports fell to a 10-year low in April, driven by long customs clearance delays and late shipments from Brazil, Reuters reported.

Total imports for the month were 6.08 million tonnes, down 29.1% from a year earlier and the lowest since 2015, according to Reuters calculations based on data from China’s General Administration of Customs.

Customs delays have severely affected China’s oilseed processing sector from April to early May, reducing soybean meal supplies for the country’s vast livestock industry.

It now takes 20 to 25 days for soybean cargoes to reach processing plants from ports instead of the usual seven to 10, according to four traders who spoke on condition of anonymity because of the sensitivity of the issue in China.

“Processing operations have been hit,” one source said.

In early May, several processing plants in northern and northeastern China were forced to reduce production or stop operations altogether due to a backlog of cargo, a trader and analyst said, adding that some feed mills were left without stocks and were forced to buy expensive products on the spot market.

While activity in the processing sector is gradually recovering, market participants remain cautious about the potential for port congestion if delays continue.

From January to April, soybean imports amounted to UAH 23.19 million, down 14.6% from 27.15 million tons in the same period last year.

Soybean imports are expected to increase sharply in May and June, with some Chinese analysts and traders forecasting volumes of around 11 million tons per month.

Tags: China, soybean