Monday, January 30, 2023
spot_img
HomeFoodChina 2021 soybean imports slip 3.8%

Subscribe

To our FREE newsletter
Get all the latest maritime news delivered straight to your inbox.

China 2021 soybean imports slip 3.8%

China’s soybean imports in 2021 fell from the previous year, the first annual drop since 2018, customs data showed on Friday, depressed by weakening demand from its massive livestock sector.

China, the world’s top buyer of soybeans, brought in 96.52 million tonnes of the oilseed in the 12 months of 2021, down 3.8% from 100.33 million tonnes in 2020, data from the General Administration of Customs showed, as falling hog margins and increased wheat feeding curbed demand.

Crushers cut back soybean purchases in the second half of the year as crush margins worsened on rising imports costs and low domestic soymeal prices, said Zou Honglin, an analyst with the agriculture division of Mysteel, a China-based commodities consultancy.

“Domestic hog prices plunged, pushing down hog margins and downstream demand for soymeal. The practice of using wheat to replace some corn in feed also cut demand for soymeal,” Zou said.

December imports, however, climbed 18% compared with the same month a year earlier, coming in at 8.87 million tonnes. The figures were also up from November shipments, the data showed.

“September and October imports were especially weak. Live hog prices fell dramatically in the first half of the year and importers didn’t want to bring in too many soybeans because there was a lot of uncertainty about feed demand,” said Darin Friedrichs, co-founder of agricultural research firm Sitonia Consulting.

“It also seems like buying from the U.S. Gulf has been slow due to logistics disruptions. Many buyers just decided they could wait until new crop Brazil. That could create an interesting situation depending on how the heat wave and crop losses develop in South America,” Friedrichs said.

Shipments from the United States in the 2021/22 marketing year were curbed due to loading delays at ports following Hurricane Ida and an early 2022 Brazil soy crop.

However, drought in main soybean production regions of Brazil, China’s largest supplier of the oilseed, could cause average yields to reach a 6-year low and cut output this season from previous estimates.

China’s soybean imports hit an annual record in 2020 as crushers ramped up purchases thanks to healthy demand from a pig herd rapidly recovering from outbreaks of African swine fever. A growing oversupply of pigs, however, slashed profits from raising the livestock and sent crush margins into negative territory in 2021. These tumbled to record lows at negative 650 yuan ($102.19) a tonne in June.

The collapse in hog sector profitability and a sharp rise in wheat feed use crimped demand for soybeans, with analysts predicting around mid-2021 that China’s soybean imports for the year might be less than 100 million tonnes.

Demand for wheat as feedstock could ease in the new year as corn prices fell following a bumper harvest, while Beijing lately banned feed producers and users from participating in wheat auctions from state reserves.

Source: Reuters

Related Posts

Video

Finance & Economy
Shipping News
Ports

Oaktree looking at block sale of existing shares in Hafnia Limited

OCM Luxembourg Chemical Tankers S.à r.l. which is ultimately controlled by funds managed by Oaktree Capital Management L.P. (the "Seller") has retained Fearnley Securities,...

John Fredriksen Increases Stake in Euronav

Norwegian billionaire John Fredriksen has once again increased his stake in Belgian tanker company Euronav in wake of Frontline’s termination of its combination agreement...

First Citizens Bank Arranges $44.2 Million of Debt Financing for Navios Partners

First Citizens Bank announced that its Maritime Finance group, part of the CIT division, served as sole lead arranger on $44.2 million in debt...

Eagle Bulk Appoints Kate Blankenship to Board of Directors

Eagle Bulk Shipping Inc., one of the world’s largest owner-operators within the midsize drybulk vessel segment, announced that it has appointed A. Kate Blankenship...

Golar LNG: Unwind of majority of TTF hedges of 2023 and 2024 Dutch Title Transfer Facility exposure

Golar LNG Limited (“Golar”) announced that it has unwound the majority of its swap arrangements for its Dutch Title Transfer Facility (“TTF”) linked production...

Cyprus shipping making waves – report

Cyprus shipping, the steady driver of the economy, is sailing for better times, having...

Baltic index hits fresh multi-year lows on capesize dip

The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk...

Baltic index falls for seventh session on lower capesize demand

The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk...

Baltic index hits fresh 2-1/2-year low as larger vessel rates slip

The Baltic Exchange’s main sea freight index extended losses to a sixth straight session...

Baltic index down for fifth day on lower vessel rates

The Baltic Exchange’s main sea freight index fell for the fifth straight session on...

Port of Long Beach Closes 2022 with Second-Busiest Year

The Port of Long Beach marked its second-busiest year on record by moving 9.13 million twenty-foot equivalent units in 2022, allowing for a return...

Hapag-Lloyd AG acquires share in J M Baxi Ports & Logistics Limited

Hapag-Lloyd AG signed a binding agreement today under which it will acquire 35% of J M Baxi Ports & Logistics Limited (JMBPL) from a...

Nigeria opens ‘game changer’ billion-dollar deep seaport

Nigeria opened a billion-dollar Chinese-built deep seaport in Lagos on Monday, which is expected to ease congestion at the country’s ports and help it...

SC Ports handles nearly 3 million TEUs in record 2022

South Carolina Ports had a record 2022 with the most containers ever handled at the Port of Charleston. SC Ports moved nearly 2.8 million TEUs...

January oil loadings from Russia’s Baltic ports set to jump 50% vs Dec

Urals and KEBCO crude oil loadings from Russia’s Baltic ports of Primorsk and Ust-Luga in January are set to rise by 50% from December...