July 22, 2024

China to boost US soybean imports by 2021, Brazilian exports to fall by Reuters

2 min read
China to boost US soybean imports by 2021, Brazilian exports to fall by Reuters
China to boost US soybean imports by 2021, Brazilian exports to fall by Reuters
© Reuters. 3/13/2017 REUTERS / Paulo Whitaker loads soybeans for export to China at Santos port

BEIJING (Reuters) – Chinese imports from the United States increased in 2021 amid increased agricultural purchases from Beijing under a trade agreement with Washington, while annual Brazilian exports fell, the customs data showed on Thursday.

The world’s largest soybean importer received 32.3 million tonnes of U.S. soybeans by 2021, an increase of 25% from 25.89 million tonnes by 2020, according to data from the General Administration of Customs.

Data show that annual soybean imports from Brazil reached 58.15 million tonnes, down 9.5% from 64.28 million in 2020.

Under a trade agreement with the US, China has agreed to increase imports of all U.S. agricultural products by $ 19.5 billion by 2021, up from $ 24 billion in 2017.

As China has increased its purchases of agricultural products, including soybeans, from the United States in fulfillment of the initial trade agreement signed in January 2020, the Asian country has postponed receiving Brazilian oilseeds in the first months of the year due to bad weather. In Brazil – which delayed the harvest of the crop – it helps to expand the US export window.

Chinese processors were looking for more soybeans in the international market in early 2021 to become soybean food to feed the country’s swine herd, which is rapidly recovering from the widespread effects of African swine flu.

China bought 21.57 million tonnes of US soybeans in the first half of 2021, up 133% from 9.24 million tonnes in the previous year.

In contrast, Brazilian grain exports reached 26.13 million tonnes in the first six months of 2021, down 20% from 32.55 million tonnes in 2020.

Crush margins in China fell sharply in June, however, as the fall in pork margins reduced appetite for soybeans from all sources.

China’s total soybean imports in 1996 were 96.52 million tonnes, down 3.8% from 2020.

In December, China’s soybean imports from the United States stood at 6.09 million tonnes, more than double the previous month, customs data show, with more cargo arriving after delays caused by Hurricane Ida.

According to the data, this number has increased by 4% from the 5.84 million tonnes purchased by China from the US a year ago.

Brazil’s exports were 2.12 million tonnes in December, up 80% from 1.18 million tonnes in the previous year, but down 43% from 3.75 million tonnes in November.

(Report by Holly Ku and Dominic Patton)

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