Monday, June 10, 2019

Import of soybean by China in May falls with commercial war and swine fever

BEIJING (Reuters)-Chinese soybean imports fell by 24% in May compared to the same month of the previous year, they showed customs data on Monday, as the trade war between China and the U.S. and African swine fever harmed the demand. China bought 7,360,000 tons of soybeans in May, compared to 9,690,000 last year, according to data from the General Customs administration. The May data also fell below 7,640,000 tons of April, when shipments had jumped after buyers postponed charges due to a tariff change. China imported 31,750,000 tons in the first five months of 2019, a 12.2% drop in the same period of 2018, with higher tariffs on U.S. shipments, the Chinese's second largest supplier, containing purchases. "Soybean imports were lower because higher tariffs on U.S. shipments continued to weigh. And the demand is weak due to African swine fever. Brazil's shipments have also fallen considerably, "said Xie Juilan, an analyst at Cofeed, an agribusiness research firm. China placed a tariff and 25% on U.S. soybeans last July as part of a trade war between the two countries. In December, the countries settled a partial truce, which led China to close the purchase of 14 million tons of North American soybeans ever since. But Beijing has suspended the purchases again when tensions have renewed in early May. China now plans to stock up to 7 million tons of US soybeans acquired during the truce, in preparation for a possible prolonged commercial war. Now the Chinese government seems more prepared, according to market operators, with concerns about a potential lack of soybeans getting smaller and shorter. Chinese soybean processors have already scheduled more cargo in Brazil and Argentina after the escalation of commercial tensions. Soy shipments in the coming months should rise significantly before May, even with swine fever impacting demand, said analyst Monica Tu of Shanghai JC Intelligence Co.
DCI - 10/06/19 News Item translated automatically
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