Although China and the US have reached an agreement on soybean procurement arrangements, latest data shows that China's soybean imports continue to shift towards Brazil.
According to reports by The South China Morning Post on July 21, Chinese customs data shows that in June this year, China imported 12.08 million tons of soybeans from Brazil, a year-on-year increase of 13.7%. Meanwhile, China imported 1.27 million tons of soybeans from the United States, a year-on-year decrease of 20.6%. In that month, China's total soybean imports reached 13.55 million tons, setting a record for the highest monthly figure in June.
In the first half of this year, the gap between China’s imports of soybeans from the United States and Brazil further widened. From January to June, China imported 9.31 million tons of soybeans from the United States, a decrease of 42.4% compared to the same period last year. During the same period, China imported 34.75 million tons of soybeans from Brazil, a growth of 9.1%.
Bloomberg reported on July 7, citing sources familiar with the matter, that China has recently increased its purchases of US soybeans. COFCO Group has booked at least six ships of US soybeans, with plans to ship them from September to October this year.
Reports indicate that soybean trade is typically completed weeks or even months in advance, so short-term import data may not fully reflect the impact of the agreement. However, the declining trend in U.S. soybean exports still attracts attention.
Meanwhile, trade between Brazil and China continues to warm up. In the first half of this year, Brazil's exports to China reached $58.3 billion, a 22% increase from the previous year, setting a record. During the same period, exports to the United States decreased by 13%, to $17.4 billion.
Soybeans remain an important commodity for Brazil’s exports to China. In the first half of this year, Brazil’s export revenue from soybeans to China reached $20.2 billion, a 7% increase over the same period last year. This figure surpassed Brazil’s total export revenue to the United States during the same period. However, the increase in revenue was mainly due to price increases, and the actual export volume decreased by 0.2% year-on-year.
The report indicates that as trade tensions persist, Brazil is further solidifying its position as a major supplier of commodities in China. In addition to soybeans, Brazil’s exports of oil, iron ore, and beef to China also increased significantly in the first half of this year, further strengthening economic and trade ties between the two countries.
On the afternoon of July 2, the Chinese Ministry of Commerce held a regular press conference. The spokesperson, He Yadong, mentioned the latest progress in agricultural trade cooperation between China and the United States. He stated that agricultural trade is an important part of Sino-US economic and trade cooperation. Through recent economic and trade consultations, both sides have set guiding targets for expanding two-way agricultural trade and have agreed in principle to include relevant agricultural products within the framework of reciprocal tax reductions. Enterprises will follow market-oriented principles and conduct trade based on actual needs and market conditions.
He Yadong said that China is willing to work together with the US to create favorable conditions for two-way agricultural trade.
