China will increase imports of Brazilian soybeans from the beginning of autumn – forecast

China may step up imports of Brazilian soybeans in the period from September to December of this year, Reuters reports. It is noted that starting from the fall, the supply of oilseeds from the South American region traditionally declines and consumers from China switch to the purchase of soybeans from the USA.

“However, due to the record harvest in Brazil, the world market is expected to have the high supply of soybeans at the end of this year, which will reduce the concern of market operators about the prospects of reducing the gross harvest in the United States and low production in Argentina,” – the report says.

Recall that the soybean harvest in Brazil amounted to 155.7 mln tonnes, so importers from China are actively signing contracts for the supply of raw materials at competitive prices. For example, the price of Brazilian oilseed on C&F China basis for delivery in October is $576 per ton compared to $580 per ton shipped from the US.

“At the same time, buyers are usually willing to pay a premium of $12-15 per ton for Brazilian soybeans, which have a higher protein content compared to the oilseed from the US,” market participants explain.

According to the national statistics, last month China imported 10.27 mln tonnes of soybeans (+24.5% yoy), the main volumes of this crop came from Brazil.

Tags: China, Brazil, soybean