China’s Soybean Imports Grew 20% YoY in the First Quarter of 2017

By CnAgri2017-05-10 11:11:03 Print

China imported 19.52 million tons of soybeans in the first quarter, a year-on-year increase of 20% mainly due to the following stimulating factors.

A. Good oil crushing profits provided an incentive for active purchasing. The imported soybean crushing was profitable in 2016 and the yearly theoretical crushing profit was around 180 RMB/ton and the considerable profit (an average of 200 RMB/ton) continued until the first two months of 2017, resulting in a huge amount of purchase in China.

B. Domestic protein meal output continued to reduce, the rigid demand for soybean meal and the replacement demand both grew. Because of the poor planting return, domestic oil crops production continued to shrink and the reduction of rapeseed planting was the top one. In 2017, domestic rapeseed output was only more than 2 million tons.The reduction of other protein meal supply mainly had to be replaced by soybean meal.

The second quarter is the peak season of Brazilian soybean supply. According to the import purchase orders, 24 million tons of soybeans is expected to arrive in port.