With no US trade deal, China continues Brazil pivot for soybean supply
US farmers have petitioned for soybean orders to be part of a trade agreement with China – but Brazil is unlikely to cede its status as top supplier
China slashed its soybean imports from the United States while increasing shipments from Brazil in July, a move that further reorients its supply from the world’s top producer even as American farmers press Washington to negotiate for larger purchases of the crop in a hypothetical trade agreement.
Last month, China imported 420,873 tonnes of soybeans from the US, down 11.47 per cent from a year earlier, according to a Wednesday data release by the General Administration of Customs in Beijing.
Imports from Brazil jumped 13.92 per cent year on year to 10.39 million tonnes in July, in stark contrast to the decline in US shipments.
Overall, China’s soybean imports rose 18.39 per cent year on year to 11.67 million tonnes in July, with Brazil accounting for nearly 90 per cent of its supply. The US’ share stood at just under 4 per cent.
In the first seven months of the year, China imported 61.03 million tonnes of soybeans, up 4.63 per cent from the year prior, with nearly 70 per cent sourced from Brazil and just over a quarter from the US.
One of the US’ most important agricultural exports, soybeans have been a point of leverage at a fraught time for bilateral relations. China relies heavily on imports for its supply, primarily used as animal feed and cooking oil.