China’s soybean imports may reach record 100 mln tons in 2022/23 MY

China may import a record 100 mln tonnes of soybeans in the period from October 2022 to September 2023, according to the forecast of the US Department of Agriculture (USDA) analysts. According to their estimates, in the last quarter of the current agricultural year (July-September), the supply of oilseeds to China will remain high, as China purchases the crop in South America at competitive prices, and gradually accepts the cargoes with imported raw materials that arrived weeks and/or months earlier.

In general, China imported almost 84.5 mln tonnes of soybeans in the last 10 months (October-July of 2022/23 MY).

“The shipments from the US stopped in April, as Asian buyers took advantage of the high Brazilian soybean harvest and attractive prices. However, other suppliers of the oilseed to China increased shipments in this direction,” the report said.

In particular, the program “soybean dollar” in Argentina contributed to the recovery of sales of the crop in the first half of the season. Canada and Russia also increased exports to China due to the increase of domestic soybean production and stable processing level.

Besides, according to the USDA forecasts, in 2023/24 MY China will remain the world’s largest buyer of soybeans and will purchase 99 mln tonnes of the crop in the new season.

“China is likely to continue importing large quantities from Brazil and possibly small volumes from the United States. Prices for the new crop in the U.S. are rising, while production prospects in Brazil remain optimistic,” the report says.

Tags: China, soybean