It is reported by the Ministry of Agriculture and Rural Affairs of China that the import of soybeans from Brazil into China runs normally at the moment with little impact. March even saw a growth of soybean exports from Brazil to China. Since it is harvest season now for soybeans in Brazil, the yields for this year are likely to increase to about 1.21 million tons. Therefore, the exports would be raised accordingly.
Considering the timely offer for sale of soybeans and the fact that China is the major destination for soybean exports, Brazil is believed to take positive measures for a smooth and efficient export, varying from the farmers to the government.
In the meantime, soybeans start to enter the sowing season in late April in the USA. Therefore, the intended planting areas of soybeans are likely to be expanded. Also due to the first stage of the China-USA economic and trade agreement, an increase of soybean imports from the USA to China is to be expected.
China makes efforts to maintain soybean supply despite global outbreak of corona virus
Soybean is one of the major agricultural products with the largest import volume in China. It is mainly used to extract oil and provide animal feed. It is shown in some statistics that last year China imported 88 million 510 thousand tons of soybeans, which occupied around 85% of the domestic consumption in China. The proportion of imports from Brazil, the USA and Argentina referred respectively to 65%, 19%, and 10%. In January to February this year, 13.51 million tons of soybeans have been imported to China, an increase of 14.2% compared to the last year at the same months.
Due to the fact that Brazil, Argentina and the USA are under great pressure of the corona virus, China will pay closer attention to the influence taken on the export and import of soybeans. In addition, the country will coordinate in a better way with its major soybean exporters, in order to minimize the impact and enhance the efficiency during transportation. Apart from that, the country’s plans to boost the production of soybeans will be encouraged, so that the supply of soybeans can be ensured.
Slow logistics may cause less receipts of soybeans exported to China in April
Although operation still continue at the pots of South America and the USA, there is no denying that some delay of shipment may occur due to the impact of corona virus in those countries. Because of the quarantine, transport and shipment may take longer now. It is reported that there is a reduction of staff at some ports in Brazil. As a result, some delivery of soybeans to China in March may be prolonged till April.
8 million 900 thousand tons of soybean imports estimated in May
Because of the effective prevention and control measures in China, the domestic logistics and transportation of soybeans start to get back on track.
At the moment, Chinese soybean crushing companies have already turned the profits to a healthy stage. China will not stop purchasing soybeans from South America because of good profits. It is predicted that the import volume of soybeans in May is likely to reach 8 million 900 thousand tons, while a total volume of 18 million tons of soybeans is estimated in June and early July.
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