China’s soybean imports hit record high in May

China’s soybean imports hit a record high last month as the world’s largest buyer snapped up large volumes, mostly from Brazil, amid concerns that a trade war with the United States could push up global prices.

The Asian country’s soybean purchases more than doubled in May from the previous month to 13.92 million tonnes, according to Chinese customs data. In April, imports rose 73%.

Chinese crushers rushed to secure cheap South American beans, ordering at least 40 cargoes from Brazil in a week in early April, amid concerns that the trade conflict could complicate purchases of the American crop.

While Beijing has been diversifying its agricultural purchases, including buying more from Brazil, currently its largest soybean supplier, the crop remains the top U.S. agricultural export to China.

There has been some progress in trade talks between the world’s two largest economies. The US and China are set to resume talks in London on Monday.

Beijing has cut tariffs on all US products since the two countries agreed to a trade truce in Geneva in May, but additional duties previously imposed on a range of US farm products, including soybeans, remain in place.

A senior Chinese state planner said in April that the country’s grain supply would not be affected by a reduction in US imports of feed grains and oilseeds, thanks to ample global substitutes and ample domestic supplies.

Tags: China, soybean, imports