💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

China May soybean imports fall on trade war, pig disease

Published 06/09/2019, 11:53 PM
Updated 06/09/2019, 11:55 PM
© Reuters. Imported soybeans are transported at a port in Nantong

BEIJING (Reuters) - China's soybean imports fell 24% in May from the same month last year, customs data showed on Monday, as the ongoing Sino-U.S. trade war and deadly African swine fever checked demand.

China brought in 7.36 million tonnes of soybeans in May, down from 9.69 million tonnes last year, according to data from the General Administration of Customs. The May figure was also down from 7.64 million tonnes in April, when shipments had jumped as buyers delayed cargoes on a tax change.

China imported 31.75 million tonnes in the first five months of 2019, down 12.2% from the same period last year, as higher tariffs on shipments from the United States, China's second-largest supplier of soybeans, curbed buying.

"Soybean imports were lower as the higher tariffs on U.S. shipments continued to weigh. And demand is weak due to African swine fever. Shipments from Brazil also dropped a lot," said Xie Huilan, an analyst with Cofeed, an agribusiness research firm.

China slapped a 25% tariff on U.S. soybeans last July as part of a trade war between the world's two largest economies, bringing imports of U.S. beans to a virtual halt until the two countries agreed to a trade truce on Dec. 1. China has bought about 14 million tonnes of U.S. soybeans since then.

But Beijing again stopped buying new cargoes from the United States in early May when Sino-U.S. trade tensions were renewed. China plans to stockpile up to 7 million tonnes of U.S. cargoes booked during the earlier trade truce in preparation for a protracted trade war.

Chinese buyers last year scooped up a bumper harvest in Brazil, its top supplier of the oilseed, on worries of future tight supplies a month after Beijing threatened to levy the 25% duty on U.S. soybean imports in addition to the regular import duties and fees.

Beijing seems to be more prepared as it enters a second year with hefty taxes on U.S. soybeans, traders said, with worries over a potential shortage easing.

Chinese crushers still booked more cargoes from Brazil and Argentina following the renewed escalation of Sino-U.S. trade tensions.

Soybean shipments in the coming months were expected to jump significantly from May, even while African swine fever outbreaks continue to cut demand, said Monica Tu, analyst with Shanghai JC Intelligence Co. Ltd.

China has reported more than 120 outbreaks of the disease - across all of its mainland provinces and regions, as well as Hainan island and Hong Kong - since it was first detected in the country in early August 2018.

© Reuters. Imported soybeans are transported at a port in Nantong

The disease may reduce China's pork output by about 30% this year, according to Rabobank.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.