In July, China’s soybean imports from the United States surged threefold compared to the previous year, reaching 475,392 metric tons. This increase coincides with the U.S. growing season, although Brazilian soybeans still dominated the market, accounting for the majority of China’s total imports.
While imports from Brazil slightly decreased by 1.15% to 9.12 million tons, Brazilian soybeans comprised nearly all of the 9.85 million tons of total soybean imports into China for the month. For the January to July period, China imported 43.55 million tons from Brazil, marking a 12% increase from the same timeframe last year.
Despite the surge in U.S. imports, total arrivals from the U.S. for the first seven months of 2024 stood at 12.63 million tons, a decrease of 25% from the previous year. The increase in buying activity from Chinese crushers has been attributed to lower global prices, which have helped reduce import costs, leading to higher inventories amid subdued demand for animal feed.
Current forecasts predict a bumper U.S. soybean crop, with the U.S. Department of Agriculture raising its estimate for the 2024/25 harvest to a record 4.589 billion bushels, contributing to soy prices nearing four-year lows.