Shipment of Argentine soybean meal has cleared Chinese customs

A cargo of Argentine soybean meal has cleared Chinese customs, two Chinese traders reported. This is the first such shipment since Beijing approved imports in 2019, signaling the creation of a new trade channel with the world’s largest soybean meal exporter.

The vessel “Sumatra,” carrying 30,000 tonnes of Argentine soybean meal, departed Argentina in September and arrived at the port of Nansha in southern Guangdong province in late October, according to vessel tracking data from the maritime agency NABSA and LSEG.

“The cargo has cleared customs,” said one source familiar with the matter.

Consulting firm Mysteel reported on Tuesday that Argentine soybean meal has entered the market with high quality and “highly competitive” prices.

China is the world’s largest consumer of protein-rich animal feed raw materials, but produces most of them by processing soybeans imported primarily from Brazil and the United States.

Argentina is the world’s largest exporter of soybean oil and meal.

Reuters previously reported that Chinese feed producers purchased three shipments of Argentine soybean meal to diversify supplies amid potential disruptions due to the US-China trade war.

US grain trader Bunge, the seller of all three shipments, had previously shipped a shipment of soybean meal to China in July but later diverted it to Vietnam, citing “commercial reasons.”

The company did not immediately respond to Reuters’ request for comment.

The shipment arrives as China struggles to manage a soybean surplus after months of record imports, as buyers feared shortages if the trade war with Washington continued.

“This currently has little impact on domestic supplies, but customs clearance confirms the opening of a new trade route,” said Johnny Xiang, founder of Beijing-based AgRadar Consulting. “If quality is not an issue, future purchases are possible if prices are favorable.”

Tags: China, soybean meal, Argentina