It is
reported by the Ministry of Agriculture
and Rural Affairs of China that the import of soybeans from Brazil into
China runs normally at the moment with little impact. March even saw a growth
of soybean exports from Brazil to China. Since it is harvest season now for
soybeans in Brazil, the yields for this year are likely to increase to about
1.21 million tons. Therefore, the exports would be raised accordingly.
Considering
the timely offer for sale of soybeans and the fact that China is the major destination
for soybean exports, Brazil is believed to take positive measures for a smooth
and efficient export, varying from the farmers to the government.
In the
meantime, soybeans start to enter the sowing season in late April in the USA.
Therefore, the intended planting areas of soybeans are likely to be expanded.
Also due to the first stage of the China-USA economic and trade agreement, an
increase of soybean imports from the USA to China is to be expected.
China makes efforts to maintain soybean supply
despite global outbreak of corona virus
Soybean is one
of the major agricultural products with the largest import volume in China. It
is mainly used to extract oil and provide animal feed. It is shown in some
statistics that last year China imported 88 million 510 thousand tons of
soybeans, which occupied around 85% of the domestic consumption in China. The
proportion of imports from Brazil, the USA and Argentina referred respectively
to 65%, 19%, and 10%. In January to February this year, 13.51 million tons of
soybeans have been imported to China, an increase of 14.2% compared to the last
year at the same months.
Due to the
fact that Brazil, Argentina and the USA are under great pressure of the corona virus,
China will pay closer attention to the influence taken on the export and import
of soybeans. In addition, the country will coordinate in a better way with its
major soybean exporters, in order to minimize the impact and enhance the
efficiency during transportation. Apart from that, the country’s plans to boost
the production of soybeans will be encouraged, so that the supply of soybeans
can be ensured.
Slow logistics may cause less receipts of
soybeans exported to China in April
Although
operation still continue at the pots of South America and the USA, there is no
denying that some delay of shipment may occur due to the impact of corona virus
in those countries. Because of the quarantine, transport and shipment may take
longer now. It is reported that there is a reduction of staff at some ports in
Brazil. As a result, some delivery of soybeans to China in March may be
prolonged till April.
8 million 900 thousand tons of soybean imports
estimated in May
Because of
the effective prevention and control measures in China, the domestic logistics
and transportation of soybeans start to get back on track.
At the
moment, Chinese soybean crushing companies have already turned the profits to a
healthy stage. China will not stop purchasing soybeans from South America
because of good profits. It is predicted that the import volume of soybeans in
May is likely to reach 8 million 900 thousand tons, while a total volume of 18
million tons of soybeans is estimated in June and early July.
For more
information on China’s soybean market, please check our Crop
Farming China E News or email emarket1@cnchemicals.com..