Advertisement
US-China trade war
EconomyGlobal Economy

China’s soybean imports surge as orders to US hit zero, and South America is cashing in

Zero soybean purchases from the US in September as China’s supply diversification continues, while American farmers hold out hope for a trade deal

2-MIN READ2-MIN
64
Listen
Travis Hutchison, a soybean farmer, unloads his cargo at a local grain dealer in the US state of Maryland on October 10. Last month, China imported no American soybeans. Photo: AFP
Mandy Zuoin ShanghaiandMia Nurmamatin Hong Kong
China imported no soybeans from the United States in September, but total imports remained at high levels amid a recent escalation in the US-China trade war, the latest Chinese customs data showed.
Last month, the world’s largest food buyer purchased 12.8 million tonnes of soybeans – a crop heavily reliant on imports for its livestock industry – with a notable surge from Argentina during a brief suspension of export taxes, according to the detailed customs data released on Monday.
Advertisement
The absence of soybeans from the US – historically a leading, if not the top, supplier of soybeans to China – came amid fears among American farmers of substantial losses as they fail to secure orders from China during this season’s harvest, with trade negotiations between the two nations dragging on.

Long the top client of US soybean farmers, China is expected to make large-scale purchases of the US grain a major part of any potential trade deal.

In the meantime, and in preparation for future uncertainties, China has been stepping up purchases from other countries, mainly in South America. China’s total imports in September were up 13 per cent from the same period a year prior, and up 5 per cent from August, customs figures showed.

06:31
Soybeans: China’s new bargaining chip in trade war with US?

Brazilian soybeans continued to dominate, with a nearly 30 per cent year-on-year increase, accounting for 85.5 per cent of China’s imports in September.

Advertisement

Supplies from Argentina, China’s third-largest supplier, saw a 91.5 per cent surge from a year earlier, as China accelerated orders after Argentina’s temporary suspension of export taxes on grains and their derivatives in September to boost exports and attract US dollars to stabilise the peso.

Select Voice
Select Speed
1.00x