China: Bomb buying of soybeans from Brazil: Ministry of Economy of Brazil / Cereal Export Association
China:
-Chinese African porcine cholera subsided, resulting in strong demand for feed-
May 26, 2020
Brazilian Ministry of Economy Statistics:
Brazil’s soybean exports are expanding in response to strong Chinese demand.
In April 2020, export volume was 16.3 million tons, more than 1.7 times that of the same month of the previous year.
Following March 2020, set a new record for monthly exports.
Brazilian Grain Export Association:
Of the 13.3 million tons exported in March 2020, about three quarters were destined for China.
China’s import dependence:
China is highly dependent on soybean imports among its major grains.
Imported soybeans are mainly used as raw materials for cooking oil and livestock feed.
In China, the epidemic of African swine fever that began in 2018 has subsided.
The recovery in production of pig farms has boosted feed demand.
Brazilian Soybean Producers Association: Latest Forecasts
Brazil harvested 121 million tons of soybeans in 2020.
There is a possibility that it will surpass the United States and become the world’s largest soybean producing country.
US Department of Agriculture:
In the report released on May 12, the period from September 2019 to August 2020,
Brazil’s soybean exports are expected to reach 84 million tons, nearly 10 million tons higher than the same period last year.
Brazilian producers want to export:
The reason why Brazilian producers are becoming more export-oriented is the fall of the real currency against the dollar.
Furthermore, due to the uncertain future due to the new Corona epidemic, producers are rushing to sell because they fear the risk of logistics stagnation.
Toyo Keizai Online
https://toyokeizai.net/articles/amp/350762?display=b&_event=read-body
Import of soybeans from Shanghai port, increase of more than 50% in the last 5 months Rapid increase in Brazilian production AFPBB News
Statistics of Shanghai Customs:
January-February this year:
Affected by the new coronavirus,
the soybean import volume at the Shanghai shore fell 39.3% year-on-year to 37,000 tons.
After March:
Production resumed, soybean imports from March to May increased by 98.4% year-on-year to 260,000 tons.
Brazilian soybeans are the emerging force for soybean imports in the Shanghai coast.
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