Chinese Soybean Imports Surge as Brazil Lowers Production Estimates

Agriculture – Chinese soybean imports jump

The latest data from China Customs show that soybean imports stood at 10.27mt in June, up 24.5% YoY. Rising soybean purchases were a result of the availability of cheaper supplies from Brazil, whilst domestic crush margins have also improved from levels seen earlier in the year. Cumulative imports are up 13.6% YoY to total 52.6mt in the first half of the year.

Brazil’s agriculture agency, Conab, lowered its soybean production estimates for 2022-23 due to the dry weather in the country's southern state of Rio Grande do Sul. In its monthly report, Conab estimates Brazil’s soybean production to reach 154.6mt in 2022-23, down from a previous estimate of 155.7mt.

US weekly net export sales for the week ending 6 July showed strong demand for US corn, while soybean and wheat shipments fell over the week. US corn shipments surged to 939.2kt, compared to 669.7kt reported in the previous week and 407.2kt from a year ago. Soybean shipments stood at 289.8kt, down from 780.6kt in the previous week but still above the 249kt seen at the same time last year. As for wheat, shipments stood at 395.7kt, lower than the 402.8kt reported a week ago and the 1,047.2kt seen last year.