China's soybean imports in April fell 13.7% below the same month last year, much lower than expected by the market.
China was expected to import 8.5 million tons in April, similar to April 2017. Chinese oil mills are currently achieving good crush margins.
The drop in imports is explained by the trade dispute between the two superpowers China and USA. China threatens to impose a 25% import duty on US soybeans. In addition, the customs authorities have carried out the inspection of the goods arriving from the USA much more meticulously. Now it takes up to a ship's discharge four weeks instead of two.
China imports 60% of the world's oilseeds and produces feed for its huge herds of pigs. One third of these are typically from the USA. The threat of high punitive tariffs has virtually frozen supplies from the USA.
China's soybean imports are likely to be high this quarter. Now most deliveries come from Brazil, where a bumper harvest is just coming to an end. Observers expect that 9.5 million tons will be imported in May and 9 million tons in June.
If the punitive tariffs on US beans are actually introduced, this will affect deliveries from winter 2018/19.
China's soybean imports in the first four months of 2018 come to 26.49 million tons. In the same period in 2017, it was 27.54 million tons.
Text: HANSA Derivatives Trading GmbH /
