New data reveals a significant increase in soybean exports from the US to China.
Previously held up by customs, shipments of soybeans are now allowed into China. Last year, China did not import any soybeans from the US, but the current amount stands at 2.56 million metric tons. In October, China imported around 1.15 million tons after granting waivers to certain importers of specific US products. However, the soybean imports decreased when China imposed new tariffs on US goods. The situation improved in December following a trade war truce between the two countries.
With the initial phase of a new trade deal in place between the US and China, China has been purchasing US agricultural products in large quantities. As the US enters the autumn harvest season, it is expected to dominate the soybean market for the upcoming months. Amid the trade tensions, China aimed to broaden its sources of soybean imports. In November 2018, Brazil supplied 5.07 million metric tons of soybeans to China. This number has decreased to 3.86 million tons a year later.
There is a steady demand for soybeans in China, where they are crushed for cooking oil and to support the livestock sector. However, the recent African Swine Fever outbreak has impacted China’s pork industry, leading to decreased soybean demand. While the Chinese pork sector is in the recovery phase, the demand for soybeans is expected to rise in the near future.
