Why does China import soybeans from Brazil?

USd/lb. USD/bbl. China is making big purchases of soybeans from Brazil, an unusual move for this time of year. The Asian nation needs soybeans to feed its expanding hog herds, and November is a prime time for the U.S. to sell its crops, having just finished the harvest.

Where is China getting their soybeans from now?

While the recent increase in Chinese imports of US soybeans has been impressive, Brazil is and will remain China’s largest supplier, barring a crop failure in that country. China typically turns to the United States for soybeans once the Brazilian supply runs low.

Why do we import soybeans from China?

But the recovery of China’s hog herd, which was devastated by African swine fever, has been the key driver of its surging appetite for soybeans, which are used in animal feed for the massive livestock sector, as well as in cooking oil. “The expectation of rapid hog restocking has been the key reason for strong imports.

Can China produce soybeans?

China brought in 10.73 million tonnes of U.S. soybeans in the second half of 2021, down from 16.64 million tonnes in the previous year, while Brazil cargos came in at 32.01 million tonnes, up slightly from 31.73 million tonnes in the same period in 2020, customs data showed.

Who supplies China with soybeans?

The statistic shows the market share of leading soybean suppliers to China in 2020, by country. That year, Brazil was China’s largest soybean supplier with an import market share of 63.5 percent.

Who buys soybeans from Brazil?

China is by far the leading country of destination for soybean exports from Brazil. In 2020, the Asian country accounted for 73 percent of the Brazilian soybean export value, which totaled some 28.6 billion U.S. dollars. Spain trailed in second, as the destination for around four percent of the export value.

Is China buying American soybeans?

BEIJING, March 2 (Reuters) – China bought soybeans from the United States on Tuesday as American cargoes were competitive against Brazilian shipments, despite it being the peak period for South American soy export.

What does China do with all the soybeans?

Soybeans were to be used as a protein for animal feed. Demand increased exponentially. Today, as the largest importer and consumer of soybeans globally, nearly 85% of China’s soybean consumption is hidden in animal feed, mainly imported from Brazil, the US and Argentina.

What country consumes the most soybeans?

As of 2021, the leading country in soybean oil consumption was China, with about 18.5 million metric tons consumed.

Is China still buying US soybeans?

USDA announcements of export sales for new crop soybeans to China continue to pile up. Since Aug. 5, USDA has announced sales of 851,000 tons of U.S. soybeans to China for delivery in the 2021-22 marketing year. That includes Chinese commitments for: 131,000 tons on Aug.

Why did China stop buying soybeans?

CHICAGO/BEIJING/SINGAPORE (Reuters) – State-owned Chinese firms bought at least three cargoes of U.S. soybeans on Monday, even as sources in China said the government had told them to halt purchases after Washington said it would eliminate special treatment for Hong Kong to punish Beijing.